This work presents a simple method for calculating deviations regarding city size and the size which would correspond to it with a Pareto exponent equal to one unit (Zipf’s Law). Recent works show that when considering the entire sample without size restrictions, the estimated Pareto exponent tends to be much lower than one. Our aim is to analyse the distribution element by element, taking data from all American cities in 2000, and explain the deviation of the size predicted by Zipf’s Law and the real size of each city, using variables for each city of per capita income, distribution of employment among sectors, individuals by level of education, etc.; explicative variables which attempt to capture the influence of local externalities. To do this a Multinomial Logit Model is used.
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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number
11504.
Find related papers by JEL classification: C16 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: General - - - Econometric and Statistical Methods; Specific Distributions R00 - Urban, Rural, and Regional Economics - - General - - - General 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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Small, Kenneth A & Hsiao, Cheng, 1985.
"Multinomial Logit Specification Tests,"
International Economic Review,
Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 26(3), pages 619-27, October.
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