Economic geography, endogenous fertility, and agglomeration
Tadashi Morita () and
Kazuhiro Yamamoto ()
No 13-23, Discussion Papers in Economics and Business from Osaka University, Graduate School of Economics
In this paper, we construct an interregional trade model that has en- dogenous fertility rates in the manner of Helpman and Krugman (1985). The presented model shows that fertility rates in a large region become lower than those in a small region because of the agglomeration of man- ufacturing firms in the former. The agglomeration of firms in a region lowers the relative price of manufactured goods to child rearing costs, which raises the fertility rates. We also find that a decline in transportation costs results in the ag- glomeration of manufacturing firms, which lowers fertility rates in both large and small regions. Finally, we extend our two-region model to a multi-region model and find that the number of manufacturing firms in larger regions is always greater than that in smaller regions, meaning that fertility rates in the former are always lower than those in the latter.
Keywords: agglomeration; fertility rates; transportation costs; consumerism (search for similar items in EconPapers)
JEL-codes: J13 R10 (search for similar items in EconPapers)
Pages: 18 pages
New Economics Papers: this item is included in nep-dem, nep-geo, nep-int and nep-ure
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Working Paper: Economic Geography, Endogenous Fertility, and Agglomeration (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:osk:wpaper:1323
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