Full text: Konvolut Wealth and Income Distribution 2

(kw-y) are of w we can proceed as before: 
g (y) = f (kw-y)e dw = 
It may be noted that the condition kw y is more restrictive 
than the former condition w y. 
The result is now that the Pareto shape of the wealth distribution 
is reproduced in the income distribution, but with a larger Pareto 
coefficient (since k 1). This is exactly what had to be explained 
(the income distributions are "more equal" than the wealth distribu 
tion^ empirically). The particular shape of the rate of return distri 
bution has no influence on the result, as long as it fulfills the 
independence conditions mentioned. Unfortunately, as we shall see, 
this is not always the case. 
The income of property owners 
Some empirical data will illustrate the above theory. While this 
theory deals with property income, the data below rather refer to 
income of property owners, which in part is earned income. It is not 
easy to separate the earned and unearned income1). Nor are the two 
parts independent, so that a convolution of two separately derived 
distributions would not be appropriate. 
1) Attempts to separate them such as in are unconvincing. 
In this study, compensation for risk is included in earned income 
but by its nature it is obviously related to capital. 

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