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Gibrat’s law for cities, growth regressions and sample size

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  • González-Val, Rafael
  • Lanaspa, Luis
  • Sanz-Gracia, Fernando

Abstract

This paper uses un-truncated city population data from six countries (the United States, Spain, Italy, France, England and Japan) to illustrate how parametric growth regressions can lead to biased results when testing for Gibrat’s law in city size distributions. The OLS results show non-monotonic behaviours depending on the sample size. Moreover, it is possible to find a critical sample size from which we reject Gibrat’s law.

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Bibliographic Info

Article provided by Elsevier in its journal Economics Letters.

Volume (Year): 118 (2013)
Issue (Month): 2 ()
Pages: 367-369

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Handle: RePEc:eee:ecolet:v:118:y:2013:i:2:p:367-369

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Web page: http://www.elsevier.com/locate/ecolet

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Keywords: Gibrat’s law; City size distribution; Urban growth;

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  1. Rafael González-Val & Luis Lanaspa & Fernando Sanz, 2012. "New evidence on Gibrat’s law for cities," Working Papers 2012/18, Institut d'Economia de Barcelona (IEB).
  2. Jonathan Eaton & Zvi Eckstein, 1994. "Cities and Growth: Theory and Evidence from france and Japan," Boston University - Institute for Economic Development 36, Boston University, Institute for Economic Development.
  3. Jan Eeckhout, 2004. "Gibrat's Law for (All) Cities," American Economic Review, American Economic Association, vol. 94(5), pages 1429-1451, December.
  4. Gabaix, Xavier & Ioannides, Yannis M., 2004. "The evolution of city size distributions," Handbook of Regional and Urban Economics, in: J. V. Henderson & J. F. Thisse (ed.), Handbook of Regional and Urban Economics, edition 1, volume 4, chapter 53, pages 2341-2378 Elsevier.
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Cited by:
  1. Puente-Ajovin, Miguel & Ramos, Arturo, 2014. "On the parametric description of the French, German, Italian and Spanish city size distributions," MPRA Paper 55285, University Library of Munich, Germany.

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