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City Size Distributions as a Consequence of the Growth Process

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Author Info
Duranton, Gilles

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Abstract

The size distribution of cities in many countries follows some broadly regular patterns. Any good theory of city size distributions should (i) be able to account for this regularity, but also (ii) rely on a plausible economic mechanism and (iii) be consistent with other fundamental features of cities like the existence of agglomeration economies and crowding costs. Unlike the previous literature, the model proposed here satisfies these three requirements. It views small innovation-driven technological shocks as the main engine behind the growth and decline of cities. Cities grow or decline as they win or lose industries following new innovations. Formally, this is achieved by embedding the quality-ladder model of growth developed by Grossman and Helpman (1991) in an urban framework.

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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 3577.

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Date of creation: Oct 2002
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Handle: RePEc:cpr:ceprdp:3577

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Related research
Keywords: agglomeration economies; city-size distribution; quality-ladder models of growth;

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Find related papers by JEL classification:
O18 - Economic Development, Technological Change, and Growth - - Economic Development - - - Regional, Urban, and Rural Analyses
R11 - Urban, Rural, and Regional Economics - - General Regional Economics - - - Analysis of Growth, Development, and Changes
R12 - Urban, Rural, and Regional Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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References listed on IDEAS
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    Other versions:
Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Jan Eeckhout, 2004. "Gibrat's Law for (All) Cities," American Economic Review, American Economic Association, vol. 94(5), pages 1429-1451, December. [Downloadable!]
  2. Cuberes, David, 2008. "A Model of Sequential City Growth," MPRA Paper 8431, University Library of Munich, Germany. [Downloadable!]
  3. Cuberes, David, 2007. "A Model of Sequential City Growth," MPRA Paper 2172, University Library of Munich, Germany. [Downloadable!]
  4. Xavier Gabaix & Yannis M. Ioannides, 2003. "The Evolution of City Size Distributions," Discussion Papers Series, Department of Economics, Tufts University 0310, Department of Economics, Tufts University. [Downloadable!]
    Other versions:
  5. Esteban Rossi-Hansberg & Mark L. J. Wright, 2003. "Urban structure and growth," Discussion Paper / Institute for Empirical Macroeconomics 141, Federal Reserve Bank of Minneapolis. [Downloadable!]
    Other versions:
  6. Tomoya Mori & Koji Nishikimi & Tony E. Smith, 2002. "Some Empirical Regularities of Spatial Economies: A Relationship between Industrial Location and City Size," KIER Working Papers 551, Kyoto University, Institute of Economic Research. [Downloadable!]
  7. Kwok Tong Soo, 2004. "Zipfs Law for Cities: A Cross Country Investigation," CEP Discussion Papers dp0641, Centre for Economic Performance, LSE. [Downloadable!]
  8. Goerlich, Francisco José & Mas, Matilde, 2008. "Sobre el tamaño de las ciudades en España. Dos reflexiones y una regularidad empírica," MPRA Paper 15798, University Library of Munich, Germany, revised Jun 2008. [Downloadable!]
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