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Have the log-population processes stationary and independent increments? Empirical evidence for Italy, Spain and the USA along more than a century

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  • Arturo, Ramos

Abstract

We review the classical Gibrat’s process for the population of city sizes. In particular, we are interested in whether the log-population process has stationary and independent (Gibrat’s Law for cities) increments. We have tested these characteristics for the case of the municipalities of Italy and Spain and the places of USA for a time span of more than one century. The results are clear: stationarity and independence are empirically rejected by standard tests. These results open theoretically the way for the observance of other city size distributions other than the lognormal and the double Pareto lognormal, something that in fact has already happened in the literature.

Suggested Citation

  • Arturo, Ramos, 2019. "Have the log-population processes stationary and independent increments? Empirical evidence for Italy, Spain and the USA along more than a century," MPRA Paper 93562, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:93562
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    References listed on IDEAS

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    More about this item

    Keywords

    Gibrat’s process; log-population process; stationary increments; independent increments; Italian cities; Spanish cities; USA cities;
    All these keywords.

    JEL classification:

    • C46 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Specific Distributions
    • 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)

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