6533b823fe1ef96bd127e018

RESEARCH PRODUCT

PARETO OR LOG-NORMAL? BEST FIT AND TRUNCATION IN THE DISTRIBUTION OF ALL CITIES*

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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.