Abstract
AbstractIn this article, I first study an income fluctuation problem with endogenous labor supply. Let β be the agent's time discount factor and be the constant gross rate of return on assets. For , I show that the agent's wealth either approaches infinity almost surely or converges to a finite level almost surely. For , I prove the existence, uniqueness, and stability of the stationary distribution of state variables. I then show the existence of the stationary general equilibrium in an incomplete‐market model with endogenous labor supply.
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