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 dhampernowne, 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#^ fri-, 
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 
- b . |> could be regarded as the parameter of an age dis 
tribution, if the classes (states of the system) are regarded 
as age classes: 1 U 
C^O OS> • 
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.