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 i3 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 ^ .
The Pareto coefficient in the simple case is - ~-R , the ratio
of the parameters of the two exponential distributions; in the
more general case of Champernowne the Pareto coefficient is
*| ^
" —j-— . b could be regarded as the parameter of ajaf age dis
tribution, if the classes (states of the system) are regarded
as age classes
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.