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Zipf's Law for Cities in the Regions and the Country

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  • Giesen, Kristian

    (University of Duisburg-Essen)

  • Suedekum, Jens

    (Heinrich Heine University Düsseldorf)

Abstract

The salient rank-size rule known as Zipf's law is not only satisfied for Germany's national urban hierarchy, but also for the city size distributions in single German regions. To analyze this phenomenon, we build on the insights by Gabaix (1999) that Zipf's law follows from a stochastic growth process. In particular, Gabaix shows that if the regions follow Gibrat's law, we should observe Zipf at both the regional and the national level. This theory has never been addressed empirically. Using non-parametric techniques we find that Gibrat's law holds in each German region, irrespective of how "regions" are defined. In other words, Gibrat's law and therefore Zipf's law tend to hold everywhere in space.

Suggested Citation

  • Giesen, Kristian & Suedekum, Jens, 2009. "Zipf's Law for Cities in the Regions and the Country," IZA Discussion Papers 3928, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp3928
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    References listed on IDEAS

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    1. Jan Eeckhout, 2004. "Gibrat's Law for (All) Cities," American Economic Review, American Economic Association, vol. 94(5), pages 1429-1451, December.
    2. Bosker, Maarten & Brakman, Steven & Garretsen, Harry & Schramm, Marc, 2008. "A century of shocks: The evolution of the German city size distribution 1925-1999," Regional Science and Urban Economics, Elsevier, vol. 38(4), pages 330-347, July.
    3. Esteban Rossi-Hansberg & Mark L. J. Wright, 2007. "Urban Structure and Growth," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 74(2), pages 597-624.
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    6. Nitsch, Volker, 2005. "Zipf zipped," Journal of Urban Economics, Elsevier, vol. 57(1), pages 86-100, January.
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    12. 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.
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    More about this item

    Keywords

    rank-size rule; Gibrat's law; city size distributions; city growth; Zipf's law;
    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
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

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