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akshayshanker committed Jan 4, 2025
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"id": "4f1bf1b5",
"metadata": {},
"source": [
" ### Households\n",
"### Households\n",
"\n",
"Assume a continuum of atomistic households on the unit interval $[0,1]$ indexed by i. \n",
"\n",
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"\n",
"$y_{it}$ is labor income.\n",
"\n",
"\n",
"#### Labor Income\n",
"\n",
"Labor income is the product of an idiosyncratic transitory shock $\\theta$, the wage rate $w$ (determined in aggregate), and the exogenously fixed individual labor supply $\\ell$. \n",
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