Full text: Konvolut Wealth and Income Distribution 2

11 
a regression coefficient k, then again the Pareto law of 
the wealth distribution will be reproduced in income, 
but this time the Pareto coefficient will be modified to 
iX//k « 
If k is below unity - which we may anticipate, is in 
reality the likely case - then the Pareto coefficient for 
income will be larger than for wealth. 
It is time now to turn to the restrictive assumptions which 
so far have been stated only in algebraic terms: 
W>Y in the case of independence, kW>Y in the case of 
linear dependence^ 
c 
This means that the rate of return must not be 100 % or 
larger in the first case; in the second case, if k<1, 
Thrill, 
loo e /o , 
The res 
tUcrf 
is necessary, becaus^the Pare to. -denaity- 
Ltfyvyru t/Li&M&jfiyUn, zx./uvu 
ealth is defined as equal zero for^W<0; in con- 
equence, the left tail of the functiop^f* (W) (correspond 
ing to negative values of W, thus to rates of return/of 
100 %^ehd more) must also be defined as equal to^ero (see 
The fqnOtion f* jxT relates to the case where
	        

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