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New Evidence on Gibrat’s Law for Cities

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  • González-Val, Rafael
  • Lanaspa, Luis
  • Sanz, Fernando

Abstract

The aim of this work is to test empirically the validity of Gibrat’s Law in the growth of cities, using data for all the twentieth century of the complete distribution of cities (without any size restrictions) in three countries: the US, Spain and Italy. On considering the distribution of cities, we find a tendency to divergence. However, this fact does not impede, whether from an empirical or a theoretical point of view, that city size distribution can be adequately approximated with a lognormal distribution. Also, the conclusions which can be obtained as to fulfilment or not of Gibrat’s Law depend, first, on the sample size and, second, on the size of the cities being considered (large or small), which means that the results of any study which does not use all the distribution will be relative.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 10411.

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Date of creation: 05 Sep 2008
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Handle: RePEc:pra:mprapa:10411

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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. 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.
  2. Guy Michaels & Ferdinand Rauch & Stephen Redding, 2008. "Urbanisation and structural transformation," LSE Research Online Documents on Economics 25495, London School of Economics and Political Science, LSE Library.
  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 & 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.
  5. González-Val, Rafael & Lanaspa, Luis, 2011. "Patterns in U.S. urban growth (1790–2000)," MPRA Paper 31006, University Library of Munich, Germany.

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