Gibrat's Law for (All) Cities: Reply

S-Tier
Journal: American Economic Review
Year: 2009
Volume: 99
Issue: 4
Pages: 1676-83

Score contribution per author:

8.043 = (α=2.01 / 1 authors) × 4.0x S-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

This reply refutes the objection raised by Levy (2009) about the fit of the upper tail of the city size distribution in Eeckhout (2004). I show that the method on which his conclusion is based is unsubstantiated. The visual interpretation of the fit on log-log plots is misleading. In addition, the methodology used to estimate a truncated subsample of the distribution while testing its significance against a distribution with prespecified parameters is ill-founded. The main conclusion is that Gibrat's law holds: city sizes follow proportionate growth, thus giving rise to a lognormal size distribution, tail included. (JEL R11, R12, R23)

Technical Details

RePEc Handle
repec:aea:aecrev:v:99:y:2009:i:4:p:1676-83
Journal Field
General
Author Count
1
Added to Database
2026-01-25