Older cities in the US tend to be larger than younger ones. The distribution of city sizes is, therefore, systematically related to the country's city age distribution. We introduce endogenous city creation into a dynamic economic model of an urban system. All cities exhibit the same long-run...

Recent research suggests that the power law is one of the most universal laws in nature and it also seems to work quite fine in economics and finance. In this paper we show that the power law explains extremely well the relationship between the value of broad-based market indices and their...

This paper assesses the empirical validity of Zipf¿s Law for cities, using new data on 73 countries and two estimation methods ¿ OLS and the Hill estimator. With either estimator, we reject Zipf¿s Law far more often than we would expect based on random chance; for 53 out of 73 countries using...

We use data for metro areas in the United States, from the US Census for 1900 û 1990, to test the validity of Zipf's Law for cities. Previous investigations are restricted to regressions of log size against log rank. In contrast, we use a nonparametric procedure to calculate local Zipf...

We use data for metro areas in the United States, from the US Census for 1900 û 1990, to test the validity of Zipf''s Law for cities. Previous investigations are restricted to regressions of log size against log rank. In contrast, we use a nonparametric procedure to calculate local Zipf...