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Bones, Bombs and Break Points: The Geography of Economic Activity

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Author Info
Donald R. Davis
David E. Weinstein

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Abstract

We consider the distribution of economic activity within a country in light of three leading theories - increasing returns, random growth, and locational fundamentals. To do so, we examine the distribution of regional population in Japan from the Stone Age to the modern era. We also consider the Allied bombing of Japanese cities in WWII as a shock to relative city sizes. Our results support a hybrid theory in which locational fundamentals establish the spatial pattern of relative regional densities, but increasing returns may help to determine the degree of spatial differentiation. One implication of these results is that even large temporary shocks to urban areas have no long-run impact on city size.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 8517.

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Date of creation: Oct 2001
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Publication status: published as Davis, Donald R. and David W. Weinstein. "Bones, Bombs, And Break Points: The Geography Of Economic Activity," American Economic Review, 2002, v92(5,Dec), 1269-1289.
Handle: RePEc:nbr:nberwo:8517

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F1 - International Economics - - Trade
R1 - Urban, Rural, and Regional Economics - - General Regional Economics

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  2. Eaton, Jonathan & Eckstein, Zvi, 1997. "Cities and growth: Theory and evidence from France and Japan," Regional Science and Urban Economics, Elsevier, vol. 27(4-5), pages 443-474, August. [Downloadable!] (restricted)
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  3. J. Peter Neary, 2001. "Of Hype and Hyperbolas: Introducing the New Economic Geography," Journal of Economic Literature, American Economic Association, vol. 39(2), pages 536-561, June. [Downloadable!] (restricted)
  4. Gallup, J.L. & Sachs, J.D. & Mullinger, A., 1999. "Geography and Economic Development," Papers 1, Chicago - Graduate School of Business.
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  6. Rosen, Kenneth T. & Resnick, Mitchel, 1980. "The size distribution of cities: An examination of the Pareto law and primacy," Journal of Urban Economics, Elsevier, vol. 8(2), pages 165-186, September. [Downloadable!] (restricted)
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  16. Xavier Gabaix, 1999. "Zipf'S Law For Cities: An Explanation," The Quarterly Journal of Economics, MIT Press, vol. 114(3), pages 739-767, August. [Downloadable!] (restricted)
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