5 a
Th/ose few units whidh survive for good continue to grow; on the
other end of. the scale new entrants/enlarge the total sample
of firms or wealthy dynasties. The continuance of the steady jcc
state with unchanged distribution is accompanied by a steadily
growing size of the sample whidh produces ever larger firms,
wealth holdings etc. These large units always existed potentially
but could not be realised x± as long as the sample was too small;
with the growth of the economy such potential sizes become actual
and in consequence the largest units represent a greater and greater
sha^e of the total although the theoretical distribution is
unchanged. With the finite life and the stable population
of Champemowne' s model this peculiar form of growing inequality
*
would not arise.
Further developments
We may consider the following stages in the treatment of the
income distribution:
I. Champemowne 1 s Model.
II. fiutherfordd model /I9/. He treated person's life-times explicitly.
III. The above models are open to criticisms on two grounds:
First, income is not very suitable as a state variable
for a Markov process. It does not embody the "influence