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A nonparametric analysis of the growth process of Indian cities

Listed author(s):
  • Luckstead, Jeff
  • Devadoss, Stephen
Registered author(s):

    We examine the growth process of the largest cities in India for the post economic reform period 1991–2011 to analyze Gibrat’s and Zipf’s laws by applying nonparametric estimation. The results from stochastic kernel, contour plots, and expected growth rate and variance conditional on city size establish that Gibrat’s law holds for largest cities in India, i.e., city growth is independent of population size, and the local Zipf exponent is around one and stable. Gibrat’s law is also confirmed by the parametric regression of the aggregate relationship of the growth rate on city size.

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    File URL: http://www.sciencedirect.com/science/article/pii/S016517651400278X
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    Article provided by Elsevier in its journal Economics Letters.

    Volume (Year): 124 (2014)
    Issue (Month): 3 ()
    Pages: 516-519

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    Handle: RePEc:eee:ecolet:v:124:y:2014:i:3:p:516-519
    DOI: 10.1016/j.econlet.2014.07.022
    Contact details of provider: Web page: http://www.elsevier.com/locate/ecolet

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    1. Glaeser, Edward L. & Scheinkman, JoseA. & Shleifer, Andrei, 1995. "Economic growth in a cross-section of cities," Journal of Monetary Economics, Elsevier, vol. 36(1), pages 117-143, August.
    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.
    3. Luckstead, Jeff & Devadoss, Stephen, 2014. "A comparison of city size distributions for China and India from 1950 to 2010," Economics Letters, Elsevier, vol. 124(2), pages 290-295.
    4. Jan Eeckhout, 2004. "Gibrat's Law for (All) Cities," American Economic Review, American Economic Association, vol. 94(5), pages 1429-1451, December.
    5. Anderson, Gordon & Ge, Ying, 2005. "The size distribution of Chinese cities," Regional Science and Urban Economics, Elsevier, vol. 35(6), pages 756-776, November.
    6. Hernán D. Rozenfeld & Diego Rybski & Xavier Gabaix & Hernán A. Makse, 2011. "The Area and Population of Cities: New Insights from a Different Perspective on Cities," American Economic Review, American Economic Association, vol. 101(5), pages 2205-2225, August.
    7. Ioannides, Yannis M. & Overman, Henry G., 2003. "Zipf's law for cities: an empirical examination," Regional Science and Urban Economics, Elsevier, vol. 33(2), pages 127-137, March.
    8. 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.
    9. repec:hoo:wpaper:e-95-4 is not listed on IDEAS
    10. Urzua, Carlos M., 2000. "A simple and efficient test for Zipf's law," Economics Letters, Elsevier, vol. 66(3), pages 257-260, March.
    11. Stefano Magrini, 2007. "Analysing Convergence through the Distribution Dynamics Approach: Why and how?," Working Papers 2007_13, Department of Economics, University of Venice "Ca' Foscari".
    12. S. Narayan, 2009. "India," Chapters,in: The Political Economy of Trade Reform in Emerging Markets, chapter 7 Edward Elgar Publishing.
    13. Xavier Gabaix, 1999. "Zipf's Law for Cities: An Explanation," The Quarterly Journal of Economics, Oxford University Press, vol. 114(3), pages 739-767.
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