This repo replicate the diffussion and fat tail income and wealth distribution in a Aiyagari-Bewley-Huggett model from Income and Wealth Distribution in Macroeconomics: A Continuous-Time Approach.
The Julia codes are an adaptation of the original codes in Matlab. The repo is divided into two folders: diffusion and fat_tail. Each has the following structure:
1_Parameters.jl: definition of the parameters.2_Steady_state.jl: i) steady state, ii) partial equilibrium, iii) Fokker-Planck equation, v) updating of prices, and vi) individual solution of the value function.3_Main.ipynb: model solution.