An empirical regularity designated as the Number-Average Size (NAS) Rule was first identified for the case of Japan by Mori, Nishikimi, and Smith, and subsequently extended to the United States by Hsu. This rule asserts a negative log-linear relation between the number and average population size of cities where a given industry is present. In this paper, we utilize the cluster-identification methodology developed by Mori and Smith to sharpen this notion of "industrial presence" by focusing only on cities that constitute at least part of a significant spatial agglomeration for the given industry. Our key result is to show that the NAS rule continues to hold (even more strongly) under this sharper definition.
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