The Ergodic Distribution of Wealth with Random Shocks

A convergence model in which welath accumulation is sibject to i.i.d. random shocks is examined. The accumulation function shows what kt+1 - wealth at t+1 - would be given kt and with no shock. it has a positive slope, but its concavity or convexity is indeterminate. The focus is the ergodic distribution of welath. This distribution satisfies a Fredholm integral equation. The ergodic distribution can be characterized in some respects by direct analysis of the stochastic process governing wealth accumulation and by use of the Fredholm equation without solution.