23
understand and interpret the empirical joint distributions
of income and wealth. For this purpose one would no doubt
require data which are more conveniently arranged than the
published material used above, and for this reason alone
it would go beyond the modest scope of this paper.
Footnotes.
1 The difficulties arising from the discrete
representation of a continuous income variable
(Cramer,1969,p.62)in the matrix need not concern us
here.They do not exist since we relate the classes of the
matrix to rank in a hierarchy.
2 Champernowne apparently did not know Yule's paper. It
was Simon's merit to have brought it to the attention of
economists.Unfortunately he used it in a form which
obscured its essence which is the interplay of two
exponential,or geometrical,distributions resulting from
two stochastic processes.
A very different approach to the Pareto law has been
proposed by D.Sahal (1978) who connected it with the
progress function and with the allometric law (the
relation between the growth rates of different parts of an
organism).