González-Val, Rafael and Lanaspa, Luis and Sanz, Fernando (2012): Gibrat’s law for cities, growth regressions and sample size.
Download (49kB) | Preview
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.
|Item Type:||MPRA Paper|
|Original Title:||Gibrat’s law for cities, growth regressions and sample size|
|Keywords:||Gibrat’s law; city size distribution; urban growth|
|Subjects:||R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R0 - General > R00 - General
R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R1 - General Regional Economics > R12 - Size and Spatial Distributions of Regional Economic Activity
R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R1 - General Regional Economics > R11 - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
|Depositing User:||Rafael González-Val|
|Date Deposited:||14. Nov 2012 14:34|
|Last Modified:||22. Feb 2013 18:24|
Eaton, J., and Z. Eckstein (1997). Cities and Growth: Theory and Evidence from France and Japan. Regional Science and Urban Economics, 27: 443–474.
Eeckhout, J. (2004). Gibrat's Law for (All) Cities. American Economic Review, 94(5): 1429–1451.
Gabaix, X. and Y. M. Ioannides (2004). The Evolution of City Size Distributions. In Handbook of Urban and Regional Economics, vol. 4, ed. John V. Henderson and Jean. F. Thisse, 2341–2378. Amsterdam: Elsevier Science, North-Holland.
González-Val, R. (2010). The evolution of the US city size distribution from a long-run perspective (1900–2000). Journal of Regional Science, 50(5): 952–972.
González-Val, R., L. Lanaspa, and F. Sanz (2012). New Evidence on Gibrat’s Law for Cities. IEB Working paper No. 2012/18.