Findeisen, Sebastian; Suedekum, Jens - Institute for the Study of Labor (IZA) - 2007
In this paper we show that the recent model by Duranton (AER, 2007) performs remarkably well in replicating the city size distribution of West Germany, much better than the simple rank-size rule known as Zipf’s law. The main mechanism of this theoretical framework is the "churning" of...