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On the distribution of city sizes

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  • Córdoba, Juan-Carlos

Abstract

The city size distribution in many countries is remarkably well described by a Pareto distribution. We derive conditions that standard urban models must satisfy in order to explain this regularity. We show 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 of different goods follow reflected random walks, and increasing returns are equal across goods.

Suggested Citation

  • Córdoba, Juan-Carlos, 2008. "On the distribution of city sizes," Journal of Urban Economics, Elsevier, vol. 63(1), pages 177-197, January.
    • Handle: RePEc:eee:juecon:v:63:y:2008:i:1:p:177-197
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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;

    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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