 In particular, formula_81 and formula_82 are independent and formula_81 is Pareto with scale parameter "x"m and shape parameter "nα", whereas formula_82 has an inverse-gamma distribution with shape and scale parameters "n" − 1 and "nα", respectively.Vilfredo Pareto originally used this distribution to describe the allocation of wealth among individuals since it seemed to show rather well the way that a larger portion of the wealth of any society is owned by a smaller percentage of the people in that society.He also used it to describe distribution of income.