Gibrat's Law and the Growth of Canadian Cities

J. Stephen Clark and Jack C. Stabler
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J. Stephen Clark: Departments of Economics and Agricultural Economics
Jack C. Stabler: University of Saskafchewan, Saskatoon, Saskatchewan S7N OWO. Canada

Urban Studies, 1991, vol. 28, issue 4, 635-639

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.

Date: 1991
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Persistent link: https://EconPapers.repec.org/RePEc:sae:urbstu:v:28:y:1991:i:4:p:635-639

DOI: 10.1080/00420989120080701

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