5a
Th^ose fww units whidh survive for good oontinue to grow* on the
other end of the scale new entrantsenlarge the total sample
of firms or wealthy dynasties. The c mtinueace of the steady xx
state with unchanged distribution is accompanied by a steadily
growing size of the sample whidh produces over larger firms,
wealth holdings etc. These large units always existed potentially
but could not be realijrod sdt as long as the sample was too smallj
with the growth of the economy such potential sizes become actual
and in consequenoe the largest units represent a greater and greater
share of the total although the theoretical distribution is
unchanged. With the finite life and the stable population
of Charapem wne’s m^del this peculiar form of growing inequality
would not arise.
Further devel omenta
e may c nsider the f 11)wing stages in the treatment f the
income distributi n»
I. Champem wne’s Model.
II. Rutherf rdd model /I9/. He treated person’s life-times explicitly.
III. The above models are open to criticism^ on two gr undsi
First, income is not very suitable as a state variable
for a Markov process. It does not embody the "influence