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Pareto tail index for city populations

Populations of cities above a known cutoff xmx_m are modeled as Pareto with unknown index α\alpha, density f(xα)=αxmαxα+1f(x \mid \alpha) = \dfrac{\alpha x_m^{\alpha}}{x^{\alpha+1}} for xxmx \ge x_m. A sample of n=200n = 200 cities has iln(xi/xm)=50\sum_i \ln(x_i / x_m) = 50.

Estimate α\alpha by maximum likelihood.

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