This is Exercise 2.1 of Varadhan's Stochastic Processes. Let $\tau_i$ be a sequence of independent identically distributed random variables with a common exponential distribution $e^{-\tau}\textrm{d}\tau$. Define
$N(t) = 0$ if $0\leq t < \tau_1 $
$N(t)= k$ if $\tau_1+\ldots+\tau_k \leq t < \tau_1+\ldots+\tau_{k+1}$.
I'm trying to show that $N(t)$ is a Poisson process and for this, I need to show that the distribution of $N(t+h)-N(t)$ is independent of t,i.e. the same for all $t$. Thanks for any help.
I'll try to give an answer to the above question. $N(t)$ and $N(t+h) - N(t)$ are independent. $P(N(t+h) - N(t)=n) = P(N(t+h) - N(t)=n\ \vert N(t)=k )= $ $ P(\tau_{k+1}+\ldots+\tau_{k+n}\leq h < \tau_{k+1}+\ldots+\tau_{k+n+1})$ is independent of $t$. In fact, it is the Poisson distribution of rate $\lambda h$ as mentioned by Kurt G. in the comments below.