Agglomeration, Fertility, and Life Expectancy

We introduced the structure of an overlapping generation model endogenizing fertility into a new economic geography model to analyze regional demographics. The results demonstrate that 1) when inter-regional migration is difficult, spatial configuration tends to be symmetric in a steady state; 2) when the inter-regional migration becomes easier, spatial agglomeration appears; and 3) the longevity improvement causes more spatial agglomeration and suppresses the size of the economy.

SSRN: http://dx.doi.org/10.2139/ssrn.4454117