Agglomeration and population aging in a two region model of exogenous growth

@inproceedings{GrafenederWeissteiner2009AgglomerationAP,
  title={Agglomeration and population aging in a two region model of exogenous growth},
  author={Theresa Grafeneder-Weissteiner and Klaus Prettner},
  year={2009}
}
This article investigates the effects of introducing demography into the New Economic Geography. We generalize the constructed capital approach, which relies on infinite individual planning horizons, by introducing mortality. The resulting overlapping generation framework with heterogeneous individuals allows us to study the effects of aging on agglomeration processes by analytically identifying the level of trade costs that triggers catastrophic agglomeration. Interestingly, this threshold… CONTINUE READING

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