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Agglomeration processes in aging societies

Theresa Grafeneder-Weissteiner and Klaus Prettner

Department of Economics Working Papers from Vienna University of Economics and Business, Department of Economics

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.

JEL-codes: C61 F15 J10 R12 (search for similar items in EconPapers)
Date: 2010-06
New Economics Papers: this item is included in nep-age, nep-dge, nep-geo and nep-ure
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Working Paper: Agglomeration processes in ageing societies (2010) Downloads
Working Paper: Agglomeration processes in aging societies (2010) Downloads
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