It- will, be noted that the process' can be described up to
this point without any reference to. income. We. may-regard the
states of the system represented by the elements of the matrix.'
as "graces or ,r age" -'possibly carreer, age or age in earning
life,, although in conformity with Champernowne we referred to.
them as income classes. . ' .■ ..f - ;
We have now to define the inccme.in relation to the class
intervals of the matrix:. The lower limit of class 1 is
taken to he the minimum'income. We may choose the income
units such that the minimum income is unity, i.e. on the
logarithmic scale it is zero. The income y^ at the lower
limit of successive income classes K is' defined hy
l
y
or In y K = Kh
1)
where h is the size of the class interval on the log scale '.
Ik - e
kh
C
The difS-culties arising from the discrete representation of
a continuous income variable in the matrix do not concern
us here. See £/qJ p. 62. TZe-j
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