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Agglomeration and demographic change

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  • Grafeneder-Weissteiner, Theresa
  • Prettner, Klaus

Abstract

This article investigates common consequences of demographic change and economic integration for the spatial location of economic activity. In doing so, it provides a unified framework that introduces an overlapping generation structure into a New Economic Geography model. Whether integration leads to agglomeration crucially hinges on the demographic properties of economies. While population aging strengthens concentration tendencies, population growth acts as a dispersion force. This is consistent with the stylized relationships between demography and urbanization found in the data and thus allows us to assess the possibility of agglomeration in various demographic scenarios.

Suggested Citation

  • Grafeneder-Weissteiner, Theresa & Prettner, Klaus, 2013. "Agglomeration and demographic change," Journal of Urban Economics, Elsevier, vol. 74(C), pages 1-11.
    • Handle: RePEc:eee:juecon:v:74:y:2013:i:c:p:1-11
    DOI: 10.1016/j.jue.2012.09.001
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    Cited by:

    1. Michael Kuhn & Klaus Prettner, 2023. "Rising Longevity, Increasing the Retirement Age, and the Consequences for Knowledge‐based Long‐run Growth," Economica, London School of Economics and Political Science, vol. 90(357), pages 39-64, January.
    2. Madoka Muroishi & Akira Yakita, 2022. "Urbanization and population contraction," Letters in Spatial and Resource Sciences, Springer, vol. 15(3), pages 543-553, December.
    3. Davis, Colin & Hashimoto, Ken-ichi & Tabata, Ken, 2022. "Demographic structure, knowledge diffusion, and endogenous productivity growth," Journal of Macroeconomics, Elsevier, vol. 71(C).
    4. Diana Gutiérrez Posada & Fernando Rubiera Morollón & Ana Viñuela, 2018. "Ageing Places in an Ageing Country: The Local Dynamics of the Elderly Population in Spain," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 109(3), pages 332-349, July.
    5. Theresa Grafeneder-Weissteiner & Klaus Prettner & Jens Südekum, 2020. "Three Pillars of Urbanization: Migration, Aging, and Growth," De Economist, Springer, vol. 168(2), pages 259-278, June.
    6. Mariateresa Ciommi & Gianluca Egidi & Rosanna Salvia & Sirio Cividino & Kostas Rontos & Luca Salvati, 2020. "Population Dynamics and Agglomeration Factors: A Non-Linear Threshold Estimation of Density Effects," Sustainability, MDPI, vol. 12(6), pages 1-19, March.
    7. Gianluca Egidi & Giovanni Quaranta & Luca Salvati & Rosanna Salvia & Gimenez Morera Antonio, 2021. "Investigating density-dependent patterns of population growth in Southern Italy, 1861–2019," Letters in Spatial and Resource Sciences, Springer, vol. 14(1), pages 11-30, April.
    8. Takahashi, Takaaki, 2022. "On the economic geography of an aging society," Regional Science and Urban Economics, Elsevier, vol. 95(C).

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    More about this item

    Keywords

    Agglomeration; Constructed capital model; Population aging; Population growth;
    All these keywords.

    JEL classification:

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

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