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Stability of Zipf's law and occult spatial dependence effects: A study on the OECD countries

2025/03/28 by Bergs, Rolf, Neumann, Uwe
#62H11 #62J05 #FOS: Physical sciences #J.4 #Physics and Society (physics.soc-ph)

paper · doi:10.48550/arxiv.2503.22463

Abstract

We investigate spatial dependence in Zipf's law for cities among the OECD countries. The aim is to identify an upper tail of the distribution that follows a power law (Pareto) but is perturbed by spatial autocorrelation, as indicated by a coefficient with a significant minor or major deviation from a distribution corresponding to a (non-spatial) Zipf law. For that purpose, we augment the usual Pareto model with a spatial weight matrix and apply SEM/SAR regressions. The results for the OECD countries are mixed. In particular, we investigate the rank-size distribution of cities by estimating local Moran-I coefficients (LISA) along the city ranks to locate the causes of spatial dependence. As an example, we demonstrate the approach for Belgium, a medium-sized OECD country.

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