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New evidence on Gibrat’s law for cities

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  • Rafael González-Val

    ()
    (Universitat de Barcelona & IEB)

  • Luis Lanaspa

    ()
    (Universidad de Zaragoza)

  • Fernando Sanz

    ()
    (Universidad de Zaragoza)

Abstract

The aim of this work is to test empirically the validity of Gibrat’s law on the growth of cities, using data on the complete distribution of cities from three countries (the US, Spain and Italy) for the entire twentieth century. In order to achieve this, we use different techniques. First, panel data unit root tests tend to confirm the validity of Gibrat’s law in the upper-tail distribution. Second, when we consider the entire distribution, we find that Gibrat’s law does not hold exactly in the long term using nonparametric methods that relate the growth rate to the initial city size.

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Bibliographic Info

Paper provided by Institut d'Economia de Barcelona (IEB) in its series Working Papers with number 2012/18.

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Length: 44 pages
Date of creation: 2012
Date of revision:
Handle: RePEc:ieb:wpaper:2012/6/doc2012-18

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Keywords: Gibrat’s law; city size distribution; urban growth;

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References

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Citations

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Cited by:
  1. Rafael Gonzalez-Val & Luis Lanaspa, 2013. "Patterns in US Urban Growth (1790?2000)," ERSA conference papers ersa13p254, European Regional Science Association.
  2. Michaels, Guy & Rauch, Ferdinand & Redding, Stephen J, 2008. "Urbanization and Structural Transformation," CEPR Discussion Papers 7016, C.E.P.R. Discussion Papers.
  3. González-Val, Rafael & Ramos, Arturo & Sanz-Gracia, Fernando, 2013. "The accuracy of graphs to describe size distributions," MPRA Paper 48577, University Library of Munich, Germany.
  4. González-Val, Rafael & Lanaspa, Luis & Sanz-Gracia, Fernando, 2013. "Gibrat’s law for cities, growth regressions and sample size," Economics Letters, Elsevier, vol. 118(2), pages 367-369.
  5. 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.

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