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The Personal Distribution of Income

Bibliographic data

Works

Document type:
Works
Collection:
Josef Steindl Collection
Title:
The Personal Distribution of Income
Author:
Steindl, Josef
Scope:
Typoskript, 24 Seiten (23 Seiten auf Durchschlagpapier), mit zahlreichen handschriftlichen Anmerkungen und Anstreichungen
Year of publication:
1972
Source material date:
August-September 1972
Language:
English
Note:
Unveröffentlichtes Typoskript.
Topic:
Stochastic processes and size distribution
Shelfmark:
S/M.52.8
Rights of use:
All rights reserved
Access:
Free access All rights reserved
DOI:
https://doi.org/10.48671/nls.js.AC14446372

Full text

Jr 
to the tail of the recurrence time distribution, : .e. to p . 
More directly, the vector of steady state probabilities 
can be derived from the following two conditions: 
U K = pu K-1 
u Q * qu,_ + + <a u o + • • • O) 
The first condition ensures the invariance of the steady 
state; the second ensures that entries to and exits from 
the income population balance. 
It follows that 
u£ * p*Si Q (2) 
u Q »1-p p<1 
The result is, of course, identical with the distribution 
of the spent waiting tine.derived above. 
\—• 
We have now to define the income in relation to the class 
intervals of the matrix: The lower limit of class 1 is 
taken to be the minimum income. We may choose the income 
units such that the minimum income is unity, i.e. on the 
logarithmic scale it is zero. The income y^ at the lower 
limit of successive income classes k is defined by 
fc.h 
H * e 
or In y^ • kh 
where h is the size of the class interval on the log scale '. 
The difficulties arising from the discrete representation of 
a continuous income variable in the matrix do not concern 
us here. See fgl/ p. 62.
	        

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Steindl, J. (1972). The Personal Distribution of Income. https://doi.org/10.48671/nls.js.AC14446372
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