framework to formalize a theory that the variety and the functioning of markets reflect the status of national income. In the … framework is analytically tractable despite search frictions, income risks and endogenous money distributions. I use this … sufficiently high expected real income. Uninsurable idiosyncratic income risks cause households to endogenously sort into various …

In this paper, we develop and numerically solve a model of idiosyncratic labour income and idiosyncratic interest rates … to predict the evolution of a wealth distribution over time. Stochastic labour income follows a deterministic growth …

Labour income follows a deterministic growth trend and fluctuates between two values. Interest rates are drawn …