5a
Th/ose few units whidh survive for good continue to grow; on the
total sample
other end of the scale new
of firms or wealth^' dynasties. The continuance of the steady ax
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 ai 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
shajre of the total although the theoretical distribution is
unchanged. With the finite life and the stable population
of Champernowne 1 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. Champernowne 1 s Model.
II. Rutherford^ model /I9/. He treated persoh's life-times explicitly.
III. 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