-'tv*
gvv *>V»
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 ,r grq.desor ,r ags." -'possibly carreer, age on age in earning
■ .. *11 ■
life,, although in conformity with Champernowne we referred to
them as income classes. 1
We have now to define the income 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 at the lower
limit of successive income classes K is defined by
7k -
or In y K = Kh
where h is the size of the class interval on
the log scale
V
^) The difficulties arising from the discrete representation of
a continuous income variable in the matrix do not concern
us here. See £toJ p. 62. 72^ 1. Met
c 3 «-i
/ /
&
CLci <3)
‘A h
zy
.y
rts ' C
'■ '1
/y 5
7