Footnotes to p.4
1)
Although Champernowne*s theory is more complicated than the
simple model which takes its place in the above reasoning,
we can easily extend the conclusions: With Champernowne, the
promotion is stochastic, with probabilities'of non-promotion
and demotion. In this more general case p in the above solution
has to be replaced by b which is the root of the characteristic
equation of the matrix*?^ Oc -h & -
, The Pareto coefficient in the simple case is - ^ £ , the ratio
of the parameters of the two exponential distributions; in the
more general case of Champernowne the Pareto coefficient is
X n Id
~ —— . b could be regarded as the parameter of an age dis-
r
tribution, if the classes (states of the system) are regarded
as age classes j l /u feu T<r ^ ic-cct ^ r u
(,J cC o/s •yir'S’i fe
2) Champernowne apparently did not know Yule's paper: It was
H.Simon's merit to have brought it to the attention of
economists; unfortunately he reproduced it in a form which
obscured its essence, which is the interplay of the two ex
ponential distributions, i.e. of two stochastic processes.