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On the Size Distribution of Cities: An Economic Interpretation of the Pareto Coefficient

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  • S H Suh

    (Department of Economics, Yonsei University, Seoul, Korea)

Abstract

Both the hierarchy and the stochastic models of size distribution of cities are analyzed in order to explain the Pareto coefficient by economic variables. In hierarchy models, it is found that the rate of variation in the productivity of cities and that in the probability of emergence of cities can explain the Pareto coefficient. In stochastic models, the productivity of cities is found to explain the Pareto coefficient. New city-size distribution functions, in which the Pareto coefficient is decomposed by economic variables, are estimated.

Suggested Citation

  • S H Suh, 1987. "On the Size Distribution of Cities: An Economic Interpretation of the Pareto Coefficient," Environment and Planning A, , vol. 19(6), pages 749-762, June.
    • Handle: RePEc:sae:envira:v:19:y:1987:i:6:p:749-762
    DOI: 10.1068/a190749
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    References listed on IDEAS

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    1. Alperovich, Gershon, 1984. "The size distribution of cities: On the empirical validity of the rank-size rule," Journal of Urban Economics, Elsevier, vol. 16(2), pages 232-239, September.
    2. Ijiri, Yuji & Simon, Herbert A, 1974. "Interpretations of Departures from the Pareto Curve Firm-Size Distributions," Journal of Political Economy, University of Chicago Press, vol. 82(2), pages 315-331, Part I, M.
    3. Vining, Daniel R, Jr, 1976. "Autocorrelated Growth Rates and the Pareto Law: A Further Analysis," Journal of Political Economy, University of Chicago Press, vol. 84(2), pages 369-380, April.
    4. Segal, David, 1976. "Are There Returns to Scale in City Size?," The Review of Economics and Statistics, MIT Press, vol. 58(3), pages 339-350, August.
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