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The Number-Average Size Rule: A New Empirical Relationship Between Industrial Location And City Size

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  • Tomoya Mori
  • Koji Nishikimi
  • Tony E. Smith

Abstract

The spatial intensities of both industries and population are highly uneven across space. Moreover, these intensities differ not only across industries, but also change through time. Nevertheless, we show using Japanese data for metropolitan areas in two time periods that the location intensities of both industries and population are linked by surprisingly simple and persistent patterns. In particular, we identify a strong negative log-linear relation between the number and the average (population) size of metro areas in which a given industry is found. This relation, which we designate as the Number-Average Size (NAS) Rule, is also shown to be intimately connected to both the Rank-Size Rule and Christaller's (1966) Hierarchy Principle applied to metropolitan areas. In particular, we show mathematically that in the presence of the Hierarchy Principle (which holds quite well in Japan) this NAS Rule is essentially equivalent to the Rank Size Rule. Copyright Blackwell Publishing, Inc. 2008

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Bibliographic Info

Article provided by Wiley Blackwell in its journal Journal of Regional Science.

Volume (Year): 48 (2008)
Issue (Month): 1 ()
Pages: 165-211

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Handle: RePEc:bla:jregsc:v:48:y:2008:i:1:p:165-211

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Web page: http://www.blackwellpublishing.com/journal.asp?ref=0022-4146

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Cited by:
  1. Hyejin Youn & Lu\'is M. A. Bettencourt & Jos\'e Lobo & Deborah Strumsky & Horacio Samaniego & Geoffrey B. West, 2014. "The systematic structure and predictability of urban business diversity," Papers 1405.3202, arXiv.org.
  2. Valente J. Matlaba & Mark Holmes & Philip McCann & Jacques Poot, 2011. "A Century of the Evolution of the Urban System in Brazil," Working Papers in Economics 11/12, University of Waikato, Department of Economics.
  3. Ricardo Hausmann & César Hidalgo, 2011. "The network structure of economic output," Journal of Economic Growth, Springer, vol. 16(4), pages 309-342, December.
  4. Tomoya Mori & Tony E. Smith, 2011. "An Industrial Agglomeration Approach To Central Place And City Size Regularities," Journal of Regional Science, Wiley Blackwell, vol. 51(4), pages 694-731, October.
  5. Tomoya Mori & Tony E. Smith, 2009. "A Reconsideration of the NAS Rule from an Industrial Agglomeration Perspective," KIER Working Papers 669, Kyoto University, Institute of Economic Research.
  6. Xavier Gabaix, 2008. "Power Laws in Economics and Finance," NBER Working Papers 14299, National Bureau of Economic Research, Inc.
  7. Hernán D. Rozenfeld & Diego Rybski & Xavier Gabaix & Hernán A. Makse, 2009. "The Area and Population of Cities: New Insights from a Different Perspective on Cities," NBER Working Papers 15409, National Bureau of Economic Research, Inc.
  8. Hsu, Wen-Tai & Zhang, Hongliang, 2014. "The fundamental law of highway congestion revisited: Evidence from national expressways in Japan," Journal of Urban Economics, Elsevier, vol. 81(C), pages 65-76.
  9. Gordon Mulligan & Mark Partridge & John Carruthers, 2012. "Central place theory and its reemergence in regional science," The Annals of Regional Science, Springer, vol. 48(2), pages 405-431, April.
  10. Kim, Ho Yeon, 2012. "Shrinking population and the urban hierarchy," IDE Discussion Papers 360, Institute of Developing Economies, Japan External Trade Organization(JETRO).

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