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Regional Science and Urban Economics
This paper embeds the canonical model of endogenous growth with product proliferation developed by Romer [Romer, P.M., 1990. Endogenous technical change. Journal of Political Economy 98, S71–S102] into a simple urban framework. This yields a reduced form isomorphic to the popular statistical device developed by Simon [Simon, H., 1955. On a class of skew distribution functions. Biometrika 42, 425–440], which in turn can yield Zipf's law for cities. The stochastic outcomes of purposeful innovation and local spillovers can thus serve as foundations for random growth models.
© 2006. This manuscript version is made available under the CC-BY-NC-ND 4.0 license.
city size distribution, Zipf's law, endogenous growth, Simon's model
Duranton, G. (2006). Some Foundations for Zipf's Law: Product Proliferation and Local Spillovers. Regional Science and Urban Economics, 36 (4), 542-563. http://dx.doi.org/10.1016/j.regsciurbeco.2006.03.008
Date Posted: 27 November 2017
This document has been peer reviewed.