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Gibrat's Law and the Growth of Canadian Cities

Author

Listed:
  • J. Stephen Clark

    (Departments of Economics and Agricultural Economics)

  • Jack C. Stabler

    (University of Saskafchewan, Saskatoon, Saskatchewan S7N OWO. Canada)

Abstract

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 in the time series literature. Our tests indicate that Gibrat's Law cannot be rejected for the seven largest Canadian cities.

Suggested Citation

  • J. Stephen Clark & Jack C. Stabler, 1991. "Gibrat's Law and the Growth of Canadian Cities," Urban Studies, Urban Studies Journal Limited, vol. 28(4), pages 635-639, August.
    • Handle: RePEc:sae:urbstu:v:28:y:1991:i:4:p:635-639
    DOI: 10.1080/00420989120080701
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    References listed on IDEAS

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    5. Vining, Daniel R, Jr, 1976. "Autocorrelated Growth Rates and the Pareto Law: A Further Analysis," Journal of Political Economy, University of Chicago Press, vol. 84(2), pages 369-380, April.
    6. Segal, David, 1976. "Are There Returns to Scale in City Size?," The Review of Economics and Statistics, MIT Press, vol. 58(3), pages 339-350, August.
    7. Dickey, David A & Fuller, Wayne A, 1981. "Likelihood Ratio Statistics for Autoregressive Time Series with a Unit Root," Econometrica, Econometric Society, vol. 49(4), pages 1057-1072, June.
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    Cited by:

    1. Bosker, Maarten & Brakman, Steven & Garretsen, Harry & Schramm, Marc, 2008. "A century of shocks: The evolution of the German city size distribution 1925-1999," Regional Science and Urban Economics, Elsevier, vol. 38(4), pages 330-347, July.
    2. Rafael Gonz�lez-Val & Luis Lanaspa, 2016. "Patterns in US Urban Growth, 1790-2000," Regional Studies, Taylor & Francis Journals, vol. 50(2), pages 289-309, February.
    3. Beltrán Tapia, Francisco J. & Díez-Minguela, Alfonso & Martinez-Galarraga, Julio, 2018. "Tracing the Evolution of Agglomeration Economies: Spain, 1860–1991," The Journal of Economic History, Cambridge University Press, vol. 78(1), pages 81-117, March.
    4. González-Val, Rafael & Lanaspa, Luis & Sanz, Fernando, 2008. "New Evidence on Gibrat’s Law for Cities," MPRA Paper 10411, University Library of Munich, Germany.

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