Economic geography meets Hotelling: the home-sweet-home effect

• Type: Article in International Scientific Journal
• Date: 2022-02

Authors

Castro, SBSD (Author) FEP; João Correia-da-Silva (Author) FEP; Gaspar, JM (Author) FEP

Journal

Title: Economic Theory

Vol. 73 No. 1

Pages: 183-209

ISSN: 0938-2259

Publisher: Springer Nature

Indexing

ISI Web of Knowledge - 4 Citations

Scopus - 3 Citations

Other information

Authenticus ID: P-00T-9AX

DOI: 10.1007/s00199-020-01331-8

Abstract (EN): We introduce heterogeneous preferences for location in 2-region core-periphery models, thereby generating an additional dispersive force: the home-sweet-home effect. Different forms of heterogeneity in preferences for location induce different long-run spatial distributions of economic activity, depending on the short-run equilibrium model and the distribution of preferences for location that are considered. Our analysis highlights the importance of the convexity/concavity properties of utility from consumption and utility from location, as functions of the spatial distribution of economic activity.

Language: English

Type (Professor's evaluation): Scientific

No. of pages: 27