Footnotes to p.4
1) Although Champernowne r 's.. theory is more complicated, than the
' - * " t - * „ . r T ,
■simple'model which takes its place in the above-reasoning,
we. can easily extend the conclusionsWith Shampernowne,. the- '
.. - promotion, is stochastic.,, with, probabilities'of' non-promotion
and demotion*. In. this more general case p in. the above solution
■ l has. to be replaced by 'b_ which is the.' root of the characteristic
equation of the '
- ‘ - S* - ' - i ■' ' - . : Tn n ' '
,'WThe Pareto, coefficient in the simple case is —■£—*-
, the ratio
of the. parameters of the- twcr exponential distributions In the
more'general case, ofChampernowne the Pareto: coefficient'is-
ii-— * b could be regarded as . the'parameter of an age dis
tribution, if the classes; (states of the system.) are regarded
Its.: age- classes: T *> *U ** - tU
, : " o<r Aiir-
2). Champernowne- .apparently did nor know Yulefs. paperr-It was
- - ./&.Simon.’ s merit- to'have .brought it. to the. attention - of
i economists p unfortunately he reproduced it; In a form which
:he- interplay of the two ex—
of two stochastic Drocesses-
obscured Its essence* which is
ponentxal dxstrxbutxons,_ x.e'