This paper tests for the existence of diseconomies of size for Canadian cities using Gibrat's Law. If diseconomies of size are not present, then the growth rate of cities is shown to contain a unit root. Therefore, testing for Gibrat's Law is equivalent to testing for unit roots commonly found...

The way in which the economic base of regional economies influences the viability of the communities that serve them has been a subject of inquiry for several decades. Many previous studies have been static in nature, thereby failing to capture the influence of changes in the base through time....