Structural modeling of economic choices of heterogeneous agents

Income and Wealth Heterogeneity in the Macroeconomy



This is a Replication of Krusell and Smith, 1998.


Krusell, P., & Smith, Jr, A. A. (1998). Income and wealth heterogeneity in the macroeconomy. Journal of political Economy, 106(5), 867-896.




Income and wealth heterogeneity in the macroeconomy


Live Interactive Notebook

This material includes a Jupyter Notebook version. You can directly launch and interact with the Notebook within your browser using MyBinder via the "Launch" button(s) below.

Binder badge logo

Material Source Code

Econ-ARK materials are open source and available to view and clone from GitHub.

View on GitHub

How to Execute this Notebook

Install econ-ark on your computer (Quick Start Guide then follow these instructions:

  1. At a command line, change the working directory to the one where you want to install
    • On MacOS/unix, if you install in the /tmp directory, the installation will disappear after a reboot:
    • cd /tmp
  2. git clone --recursive
  3. cd KrusellSmith
  4. jupyter notebook Code/Python/KrusellSmith.ipynb