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Advisor(s)
Abstract(s)
We propose a 2-region core-periphery model where all agents are inter-regionally mobile and have Hotelling-type heterogeneous preferences for location. The utility penalty from residing in a location that is not the preferred one generates the only dispersive force of the model: the home-sweet-home effect. Different distributions of preferences for location induce different spatial distributions in the long-run depending on the short-run general equilibrium economic geography model that is considered. We study the effect of two of
those: the linear and the logit home-sweet-home effects.
Description
Keywords
Economic geography Heterogeneous location preferences Migration
Pedagogical Context
Citation
Castro, S.B.S.D., Correia-da-Silva, J., Gaspar. J. (2019). Economic geography meets hotelling: a home-sweet-home effect. In Workshop in Mathematical Economics, Faculty of Sciences, University of Porto, 15 November
Publisher
Universidade do Porto, Faculdade de Ciências