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On the Distribution of City Sizes

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  • Juan Carlos Cordoba

    (Rice University)

Abstract

The city size distribution of many countries is remarkably well approximated by a Pareto distribution. We study what constraints this regularity imposes on standard urban models. We find that under general conditions urban models must have (i) a balanced growth path and (ii) a Pareto distribution for the underlying source of randomness. In particular, one of the following combinations can induce a Pareto distribution of city sizes: (i) preferences for different goods follow reflected random walks, and the elasticity of substitution between goods is 1; or (ii) total factor productivities in the production of different goods follow reflected random walks, and increasing returns are equal across goods.

Suggested Citation

  • Juan Carlos Cordoba, 2003. "On the Distribution of City Sizes," Urban/Regional 0302002, University Library of Munich, Germany.
    • Handle: RePEc:wpa:wuwpur:0302002
    Note: Type of Document - pdf; pages: 31 ; figures: included
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    References listed on IDEAS

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    More about this item

    Keywords

    City Size Distribution; Zipf's Law; Rank-Size Rule; Pareto Distribution; Urban Growth; Multisectorial Models; Balanced Growth; Cities;
    All these keywords.

    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
    • J10 - Labor and Demographic Economics - - Demographic Economics - - - General

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