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The Size Distribution Across All "Cities": A Unifying Approach

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  • Kristian Giesen
  • Jens Suedekum

Abstract

Older cities in the US tend to be larger than younger ones. The distribution of city sizes is, therefore, systematically related to the country's city age distribution. We introduce endogenous city creation into a dynamic economic model of an urban system. All cities exhibit the same long-run growth rate (Gibrat's law), but young cities initially grow faster. The double Pareto lognormal (DPLN) emerges as the city size distribution in our model. The DPLN unifies the lognormal and the Pareto distribution (Zipf's law), and closely fits US city size data. This evidence can potentially resolve several debates from the recent literature.

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Bibliographic Info

Paper provided by Spatial Economics Research Centre, LSE in its series SERC Discussion Papers with number 0122.

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Date of creation: Dec 2012
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Handle: RePEc:cep:sercdp:0122

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Web page: http://www.spatialeconomics.ac.uk/SERC/publications/default.asp

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Keywords: Zipfs law; Gibrats law; city size distributions; city age; DPLN distribution;

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  1. Sánchez-Vidal, María & González-Val, Rafael & Viladecans-Marsal, Elisabet, 2014. "Sequential city growth in the US: Does age matter?," Regional Science and Urban Economics, Elsevier, vol. 44(C), pages 29-37.
  2. Esteban Rossi-Hansberg & Mark L. J. Wright, 2003. "Urban structure and growth," Discussion Paper / Institute for Empirical Macroeconomics 141, Federal Reserve Bank of Minneapolis.
  3. Wen‐Tai Hsu, 2012. "Central Place Theory and City Size Distribution," Economic Journal, Royal Economic Society, vol. 122(563), pages 903-932, 09.
  4. 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.
  5. David Cuberes, 2010. "Sequential city growth: empirical evidence," Working Papers. Serie AD 2010-05, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
  6. Kwok Tong Soo, 2004. "Zipfs Law for Cities: A Cross Country Investigation," CEP Discussion Papers dp0641, Centre for Economic Performance, LSE.
  7. Xavier Gabaix, 1999. "Zipf'S Law For Cities: An Explanation," The Quarterly Journal of Economics, MIT Press, vol. 114(3), pages 739-767, August.
  8. Jan Eeckhout, 2004. "Gibrat's Law for (All) Cities," American Economic Review, American Economic Association, vol. 94(5), pages 1429-1451, December.
  9. Jan Eeckhout, 2009. "Gibrat's Law for (All) Cities: Reply," American Economic Review, American Economic Association, vol. 99(4), pages 1676-83, September.
  10. Linda Harris Dobkins & Yannis M. Ioannides, 1999. "Spatial Interactions Among U.S. Cities: 1900-1990," Discussion Papers Series, Department of Economics, Tufts University 9913, Department of Economics, Tufts University.
  11. Nitsch, Volker, 2004. "Zipf zipped," Discussion Papers 2004/16, Free University Berlin, School of Business & Economics.
  12. William J. Reed, 2002. "On the Rank-Size Distribution for Human Settlements," Journal of Regional Science, Wiley Blackwell, vol. 42(1), pages 1-17.
  13. Cuberes, David, 2008. "A Model of Sequential City Growth," MPRA Paper 8431, University Library of Munich, Germany.
  14. Reed, William J., 2003. "The Pareto law of incomes—an explanation and an extension," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 319(C), pages 469-486.
  15. Giesen, Kristian & Zimmermann, Arndt & Suedekum, Jens, 2010. "The size distribution across all cities - Double Pareto lognormal strikes," Journal of Urban Economics, Elsevier, vol. 68(2), pages 129-137, September.
  16. Yannis M. Ioannides & Spyros Skouras, 2009. "Gibrat's Law for (All) Cities: A Rejoinder," Discussion Papers Series, Department of Economics, Tufts University 0740, Department of Economics, Tufts University.
  17. Moshe Levy, 2009. "Gibrat's Law for (All) Cities: Comment," American Economic Review, American Economic Association, vol. 99(4), pages 1672-75, September.
  18. Henderson, J V, 1974. "The Sizes and Types of Cities," American Economic Review, American Economic Association, vol. 64(4), pages 640-56, September.
  19. Ioannides, Yannis & Skouras, Spyros, 2013. "US city size distribution: Robustly Pareto, but only in the tail," Journal of Urban Economics, Elsevier, vol. 73(1), pages 18-29.
  20. Vernon Henderson & Anthony Venables, 2009. "Dynamics of city formation," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 12(2), pages 233-254, April.
  21. González-Val, Rafael & Ramos, Arturo & Sanz, Fernando & Vera-Cabello, María, 2013. "Size Distributions for All Cities: Which One is Best?," MPRA Paper 44314, University Library of Munich, Germany.
  22. Henderson, J. Vernon & Wang, Hyoung Gun, 2007. "Urbanization and city growth: The role of institutions," Regional Science and Urban Economics, Elsevier, vol. 37(3), pages 283-313, May.
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Cited by:
  1. Ferdinand Rauch, 2013. "Cities as Spatial Clusters," Economics Series Working Papers 656, University of Oxford, Department of Economics.
  2. Alexander S. Skorobogatov, 2014. "An Ongoing Reversal Of Fortune Among Russian Cities: City Age, Natural Resources, And Changing Spatial Income Distribution," HSE Working papers WP BRP 60/EC/2014, National Research University Higher School of Economics.
  3. González-Val, Rafael & Ramos, Arturo & Sanz, Fernando & Vera-Cabello, María, 2013. "Size Distributions for All Cities: Which One is Best?," MPRA Paper 44314, University Library of Munich, Germany.
  4. 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.
  5. Kristian GIESEN & Jens SÜDEKUM, 2012. "The French Overall City Size Distribution," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 36, pages 107-126.

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