Full text: Konvolut The Personal Distribution of Income 2

4 
To find the tail of the steady state distribution P(y^) we 
sum (2) from X to oo and obtain p K . Thus 
In P(y^) = In p . ^ In y K 
„'I 
and, putting -h In p = oC we have 
In P(y^) - -oc In 7k 0) 
Evidently the crucial feature of the model is the geometric 
distribution of the recurrence time. This relates here to 
the life-time of the persons as income receivers; since 
promotion is automatic, the age of the system is measured 
in income classes K, The age, or spent life-time, is 
geometrically (approximately exponentially) distributed. 
Since the income is also an exponential function of i£ , 
the Pareto law results from an elimination of time K from 
1) 
the two exponential functions. ' 
This is exactly the same pattern of explanation as was used 
l% - 2.^11/23 
in other fields by Simon cW and myself and 
[yv tM-- 
which is^directly descended from Yule CJj who used it 
2. 
to explain the frequency of species in genera. According to 
^Altfbqugh Champernowne' sNo^odel is more complicasted than the 
above^x^he essential feattip^s remain the same (oitiy p in 
the solution is replaced by b, the solution of a difference 
equation).
	        

Note to user

Dear user,

In response to current developments in the web technology used by the Goobi viewer, the software no longer supports your browser.

Please use one of the following browsers to display this page correctly.

Thank you.