Nuño Barrau, Galo; Moll, Benjamin - 2015
cross-sectional distribution. We show how, in continuous time, this problem can be broken down into a dynamic programming … equation plus the law of motion of the distribution, and we introduce a new numerical algorithm to solve it. As an application …, we analyze the constrained-efficient allocation of an Aiyagari economy with a fat-tailed wealth distribution. We find …