The Personal Distribution of Income

Steindl, Josef

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Document type:: Works

Collection:: Josef Steindl Collection

Title:: The Personal Distribution of Income

Author:: Steindl, Josef

Scope:: Typoskript, 28 Seiten

Source material date:: August-September 1972

Publication date:: 1972

Language:: English

Note:: Mit handschriftlichen Anmerkungen.

Related work:: Steindl, Josef: The Personal Distribution of Income. In: Steindl, Josef: Economic Papers 1941-88. London: Macmillan, 1990, S. 356-371

Topic:: Stochastic processes and size distribution

JEL Classification:: D31 [Personal Income, Wealth, and Their Distributions]

Shelfmark:: S/M.2.1

Access:: Free access

Full text

5 
this approach, size distribution is a transformed age 
distribution, and the pattern of the Pareto law appears 
so often simply because of the empirical importance of 
exponential growth which makes both the age distribution 
and the tranformation function exponential. Owing to the 
conceptual density of Champernowne's model the two 
elements of life- cycle and promotion are merged into 
one. 
(which resides 
There is, however, a difference^in the interpretation not 
in the form) between Champernowne's model and the others; 
Since physical persons sooner or later die, the age in 
his model is limited, while in the others (relating to 
firms or wealth) there is always the probability of 
virtually infinite life which accounts for a very 
peculiar character of the steady states concerned £ iJ • 
Further developments 
¥e may consider the following stages in the treatment of 
the income distribution: 
I. Champernowne's model. Q 
II. Rutherford's model £ 1$ J• He treated persons'life 
times explicitly. 
Ill* The above models are open to criticism on two grounds; 
First, income is not very suitable as a state variable 
for a Markov process. It does not embody the "influence

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