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Agglomeration processes in aging societies

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  • Theresa Grafeneder-Weissteiner

    () (Department of Economics, Vienna University of Economics & B.A.)

  • Klaus Prettner

    () (Vienna Institute of Demography, Austrian Academy of Sciences)

Abstract

This article investigates agglomeration processes in aging societies by introducing an overlapping generation structure into a New Economic Geography model. Whether higher economic integration leads to spatial concentration of economic activity crucially hinges on the economies' demographic properties. While population aging as represented by declining birth rates strengthens agglomeration processes, declining mortality rates weaken them. This is due to the fact that we allow for nonconstant population size. In particular, we show that population growth acts as an important dispersion force that augments the distributional effects on agglomeration processes resulting from the turnover of generations.

Suggested Citation

  • Theresa Grafeneder-Weissteiner & Klaus Prettner, 2010. "Agglomeration processes in aging societies," Department of Economics Working Papers wuwp131, Vienna University of Economics and Business, Department of Economics.
  • Handle: RePEc:wiw:wiwwuw:wuwp131 Note: PDF Document
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    Cited by:

    1. Holger Strulik & Klaus Prettner & Alexia Prskawetz, 2010. "R&D-Based Growth in the Post-Modern Era," VID Working Papers 1009, Vienna Institute of Demography (VID) of the Austrian Academy of Sciences in Vienna.
    2. Klaus Prettner & Alexia Prskawetz, 2010. "Demographic change in models of endogenous economic growth. A survey," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 18(4), pages 593-608, December.
    3. Thomas Fent & Belinda Aparicio Diaz & Alexia Fürnkranz-Prskawetz, 2013. "Family policies in the context of low fertility and social structure," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 29(37), pages 963-998, November.
    4. Bilal Barakat & Johannes Holler & Klaus Prettner & Julia Schuster, 2010. "The Impact of the Economic Crisis on Labour and Education in Europe," VID Working Papers 1006, Vienna Institute of Demography (VID) of the Austrian Academy of Sciences in Vienna.

    More about this item

    JEL classification:

    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • J10 - Labor and Demographic Economics - - Demographic Economics - - - General
    • F15 - International Economics - - Trade - - - Economic Integration
    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis

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