Castro, Sofia B. S. D.Correia-da-Silva, JoãoGaspar, José M.2021-01-222021-01-222021Castro, S.B.S.D., Correia-da-Silva, J., Gaspar, J.M. (2021). Economic geography meets Hotelling: the home-sweet-home effect. Economic Theory0938-2259http://hdl.handle.net/10400.14/31718We 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.engNew economic geographyCore-periphery modelHeterogeneous agentsPreferences for locationjournal article10.1007/s00199-020-01331-81432-0479WOS:000604488600001