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Gibrat's Law for (All) Cities
Abstract
Two empirical regularities concerning the size distribution of cities have repeatedly been established: Zipf's law holds (the upper tail is Pareto), and city growth is proportionate. Census 2000 data are used covering the entire size distribution, not just the upper tail. The nontruncated distribution is shown to be lognormal, rather than Pareto. This provides a simple justification for the coexistence of proportionate growth and the resulting lognormal distribution. An equilibrium theory of local externalities that can explain the empirical size distribution of cities is proposed. The driving force is a random productivity process of local economies and the perfect mobility of workers.
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Knife-Edge or Plateau: When Do Market Models Tip?
Ellison, G., & Fudenberg, D. (2003) · The Quarterly Journal of Economics · doi:10.1162/003355303322552793 · Cited by 156
Cited by
Power Laws in Economics and Finance
Gabaix, X. (2009) · Annual Review of Economics · doi:10.1146/annurev.economics.050708.142940 · Cited by 907
Power Laws in Economics: An Introduction
Gabaix, X. (2016) · Journal of Economic Perspectives · doi:10.1257/jep.30.1.185 · Cited by 435
Alessandretti, L., Aslak, U., & Lehmann, S. (2020) · Nature · doi:10.1038/s41586-020-2909-1 · Cited by 361
There is More than a Power Law in Zipf
Cristelli, M., Batty, M., & Pietronero, L. (2012) · Scientific Reports · doi:10.1038/srep00812 · Cited by 143
Power Law Distributions in Information Retrieval
Petersen, C., Simonsen, J. G., & Lioma, C. (2016) · ACM Transactions on Information Systems · doi:10.1145/2816815 · Cited by 46
Metadata
- Authors
- Eeckhout, J.
- Venue
- American Economic Review
- Publisher
- American Economic Association
- Published
- 2004-12-01
- Volume
- 94
- Issue
- 5
- Pages
- 1429-1451
- ISSN
- 0002-8282 (ISSN-L)
- OpenAlex
- W1985672722
- Cited by
- 778
- References
- 1
- FWCI
- 30.03
- Type
- journal article
- Language
- en
- Open access
- closed
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