In the literature, the distribution of city size is a controversial issue with two common contenders: the Pareto and the log-normal. While the first is most accredited when the distribution is truncated above a certain threshold, the latter is usually considered a better representation for the untruncated distribution of all cities. In this paper, we reassess the empirical evidence on the best-fitting distribution in relation to the truncation point issue. Specifically, we provide a comparison among four recently proposed approaches and alternative definitions of U.S. cities. Our results highlight the importance to look at issue of the best-fitting distribution together with the truncation issue and provide guidance with respect to the existing tests of the truncation point.

Fazio, G., Modica, M. (2015). Pareto or log-normal? Best fit and truncation in the distribution of all cities. JOURNAL OF REGIONAL SCIENCE, 55(5), 736-756 [10.1111/jors.12205].

Pareto or log-normal? Best fit and truncation in the distribution of all cities

FAZIO, Giorgio;MODICA, Marco
2015-01-01

Abstract

In the literature, the distribution of city size is a controversial issue with two common contenders: the Pareto and the log-normal. While the first is most accredited when the distribution is truncated above a certain threshold, the latter is usually considered a better representation for the untruncated distribution of all cities. In this paper, we reassess the empirical evidence on the best-fitting distribution in relation to the truncation point issue. Specifically, we provide a comparison among four recently proposed approaches and alternative definitions of U.S. cities. Our results highlight the importance to look at issue of the best-fitting distribution together with the truncation issue and provide guidance with respect to the existing tests of the truncation point.
2015
Settore SECS-P/06 - Economia Applicata
Fazio, G., Modica, M. (2015). Pareto or log-normal? Best fit and truncation in the distribution of all cities. JOURNAL OF REGIONAL SCIENCE, 55(5), 736-756 [10.1111/jors.12205].
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/10447/176583
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