Gibrat’s law for cities, growth regressions and sample size
This paper uses un-truncated city population data from six countries (the United States, Spain, Italy, France, England and Japan) to illustrate how parametric growth regressions can lead to biased results when testing for Gibrat’s law in city size distributions. The OLS results show non-monotonic behaviours depending on the sample size. Moreover, it is possible to find a critical sample size from which we reject Gibrat’s law.
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- Gabaix, Xavier & Ioannides, Yannis M., 2004.
"The evolution of city size distributions,"
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in: J. V. Henderson & J. F. Thisse (ed.), Handbook of Regional and Urban Economics, edition 1, volume 4, chapter 53, pages 2341-2378
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- González-Val, Rafael & Lanaspa, Luis & Sanz, Fernando, 2008.
"New Evidence on Gibrat’s Law for Cities,"
10411, University Library of Munich, Germany.
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4612, National Bureau of Economic Research, Inc.
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- Jonathan Eaton & Zvi Eckstein, 1994. "Cities and Growth: Theory and Evidence from france and Japan," Boston University - Institute for Economic Development 36, Boston University, Institute for Economic Development.
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