The Size Distribution Across All

Giesen, Kristian; Suedekum, Jens

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The Size Distribution Across All "Cities": A Unifying Approach

IZA Discussion Paper No. 6352

16 Pages Posted: 25 Feb 2012

See all articles by Kristian Giesen

Heinrich-Heine-University Duesseldorf, Duesseldorf Institute for Competition Economics (DICE); Centre for Economic Policy Research (CEPR); CESifo (Center for Economic Studies and Ifo Institute); Institute for the Study of Labor (IZA)

Abstract

In this paper we show that the double Pareto lognormal (DPLN) parameterization provides an excellent fit to the overall US city size distribution, regardless of whether "cities" are administratively defined Census places or economically defined area clusters. We then consider an economic model that combines scale-independent urban growth (Gibrat's law) with endogenous city creation. City sizes converge to a DPLN distribution in this model, which is much better in line with the data than previous urban growth frameworks that predict a lognormal or a Pareto city size distribution (Zipf's law).

Keywords: Zipf's law, Gibrat's law, city size distributions, double Pareto-Lognormal

JEL Classification: R11, R12, O4

Suggested Citation: Suggested Citation

Giesen, Kristian and Südekum, Jens, The Size Distribution Across All "Cities": A Unifying Approach. IZA Discussion Paper No. 6352, Available at SSRN: https://ssrn.com/abstract=2010947