Awesome-state-Aiyagari

Perpetual-youth Aiyagari model, with "awesome-state" labor income shocks following Castaneda, Diaz-Gimenez and Rios-Rull (2003).

See Appendix E.3 of Fatih Guvenen, Gueorgui Kambourov, Burhan Kuruscu, Sergio Ocampo, Daphne Chen, Use It or Lose It: Efficiency and Redistributional Effects of Wealth Taxation, The Quarterly Journal of Economics, Volume 138, Issue 2, May 2023, Pages 835–894, https://doi.org/10.1093/qje/qjac047

Currently, their results do not replicate fully. In particular, they write that they choose $e_4$ (the level of the awesome productivity state) to match a wealth share of top 1% equal to 30%. Given the value they report, $e_4=265$, the wealth share held by top 1% is only around 20%.