The Income Fluctuation Problem and the Evolution of Wealth
Published in Journal of Economic Theory, 2020
When I visited the Australian National University Research School of Economics during the summer of 2018 (it was winter in Australia), I got to know my coauthor Qingyin Ma, who was a Ph.D. student at ANU. At that time Qingyin and John were working on extending Li & Stachurski (2014) on the Euler equation method for solving optimal savings problems to the case with stochastic returns and discount factors. Initially I just helped them on proofreading and giving some feedback, but later I was asked to join the project to prove results on the wealth distribution, applying the Pareto exponent formula in Beare & Toda (2022).