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Investigation Of Urban Regularities For Croatia In The Period From 1857 To 2011

Author

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  • Hrvoje Jošić

    (Faculty of Economics and Business, University of Zagreb)

  • Berislav Žmuk

    (Faculty of Economics and Business, University of Zagreb)

Abstract

Two main regularities in the field of urban economics are Zipf’s law and Gibrat’s law. Zipf’s law states that distribution of largest cities should obey the Pareto rank-size distribution while Gibrat’s law states that proportionate growth of cities is independent of its size. These two laws are interconnected and therefore are often considered together. The objective of this paper is the investigation of urban regularities for Croatia in the period from 1857 to 2011. In order to estimate and evaluate the structure of Croatian urban hierarchy, Pareto or Zipf’s coefficients are calculated. The results have shown that the coefficient values for the largest settlements in different years are close to one, indicating that the Croatian urban hierarchy system follows the rank-size distribution and therefore obeys Zipf’s law. The independence of city growth regarding the city size is tested using penal unit roots. Results for Gibrat’s law testing using panel unit root tests have shown that there is a presence of unit root in growth of settlements therefore leading to the acceptance of Gibrat’s law.

Suggested Citation

  • Hrvoje Jošić & Berislav Žmuk, 2020. "Investigation Of Urban Regularities For Croatia In The Period From 1857 To 2011," Ekonomski pregled, Hrvatsko društvo ekonomista (Croatian Society of Economists), vol. 71(4), pages 307-329.
    • Handle: RePEc:hde:epregl:v:71:y:2020:i:4:p:307-329
    DOI: 10.32910/ep.71.4.1
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    Keywords

    Croatia; Gibrat’s law; settlements; Zipf’s law;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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