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Gibrat's law and the British industrial revolution

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Klein, Alexander and Leunig, Tim (2013) Gibrat's law and the British industrial revolution. Working Paper. Coventry, UK: Department of Economics, University of Warwick. CAGE Online Working Paper Series, Volume 2013 (Number 146).

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Abstract

This paper examines Gibrat’s law in England and Wales between 1801 and 1911 using a
unique data set covering the entire settlement size distribution. We find that Gibrat’s law
broadly holds even in the face of population doubling every fifty years, an industrial and
transport revolution, and the absence of zoning laws to constrain growth. The result is
strongest for the later period, and in counties most affected by the industrial revolution. The
exception were villages in areas bypassed by the industrial revolution. We argue that
agglomeration externalities balanced urban disamenities such as commuting costs and poor
living conditions to ensure steady growth of many places, rather than exceptional growth of
few.

Item Type: Working or Discussion Paper (Working Paper)
Subjects: D History General and Old World > DA Great Britain
H Social Sciences > HC Economic History and Conditions
Divisions: Faculty of Social Sciences > Economics
Library of Congress Subject Headings (LCSH): Gibrat, Robert, 1904- -- Criticism and interpretation, Industrial revolution -- Great Britain -- History -- 19th century , Great Britain -- Economic conditions -- 19th century, Cities and towns -- Great Britain -- Growth -- History -- 19th century
Series Name: CAGE Online Working Paper Series
Publisher: Department of Economics, University of Warwick
Place of Publication: Coventry, UK
Official Date: 2013
Volume: Volume 2013
Number: Number 146
Number of Pages: 33
Status: Not Peer Reviewed
Publication Status: Published
Access rights to Published version: Open Access (Creative Commons)

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