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The size distribution across all cities - Double Pareto lognormal strikes

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  • Giesen, Kristian
  • Zimmermann, Arndt
  • Suedekum, Jens

Abstract

Using un-truncated settlement size data from eight countries, we show that the "double Pareto lognormal" (DPLN) distribution provides a better fit to actual city sizes than the simple lognormal (LN) distribution. The DPLN has a lognormal body and features a power law in both the lower and the upper tail. It emerges in the steady-state of a stochastic urban growth process with random city formation. Our findings reconcile a recent debate on the Zipfian rank-size rule for city sizes.

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File URL: http://www.sciencedirect.com/science/article/B6WMG-4YS4W6J-1/2/8618d5832289e48dc26b4980b8aecbce
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Article provided by Elsevier in its journal Journal of Urban Economics.

Volume (Year): 68 (2010)
Issue (Month): 2 (September)
Pages: 129-137

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Handle: RePEc:eee:juecon:v:68:y:2010:i:2:p:129-137
Contact details of provider: Web page: http://www.elsevier.com/locate/inca/622905

Keywords: Zipf's law Urban growth Gibrat's law City size distributions;

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  1. David Cuberes, 2010. "Sequential city growth: empirical evidence," Working Papers. Serie AD 2010-05, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
  2. Henderson, J V, 1974. "The Sizes and Types of Cities," American Economic Review, American Economic Association, vol. 64(4), pages 640-56, September.
  3. Moshe Levy, 2009. "Gibrat's Law for (All) Cities: Comment," American Economic Review, American Economic Association, vol. 99(4), pages 1672-75, September.
  4. Jan Eeckhout, 2009. "Gibrat's Law for (All) Cities: Reply," American Economic Review, American Economic Association, vol. 99(4), pages 1676-83, September.
  5. Nitsch, Volker, 2005. "Zipf zipped," Journal of Urban Economics, Elsevier, vol. 57(1), pages 86-100, January.
  6. Xavier Gabaix & Yannis M. Ioannides, 2003. "The Evolution of City Size Distributions," Discussion Papers Series, Department of Economics, Tufts University 0310, Department of Economics, Tufts University.
  7. 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.
  8. Jan Eeckhout, 2004. "Gibrat's Law for (All) Cities," American Economic Review, American Economic Association, vol. 94(5), pages 1429-1451, December.
  9. Yannis M. Ioannides & Spyros Skouras, 2009. "Gibrat's Law for (All) Cities: A Rejoinder," Discussion Papers Series, Department of Economics, Tufts University 0740, Department of Economics, Tufts University.
  10. Mark Wright & Esteban Rossi-Hansberg, 2004. "Urban Structure and Growth," 2004 Meeting Papers 33, Society for Economic Dynamics.
  11. Xavier Gabaix, 1999. "Zipf'S Law For Cities: An Explanation," The Quarterly Journal of Economics, MIT Press, vol. 114(3), pages 739-767, August.
  12. William J. Reed, 2002. "On the Rank-Size Distribution for Human Settlements," Journal of Regional Science, Wiley Blackwell, vol. 42(1), pages 1-17.
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