This video plots the evolution of the log wealth density in three economies:
  1. a deterministic economy with geometric growth rate μl = -2% (in blue)
  2. a deterministic economy with geometric growth rate μh = -0.05% (in red)
  3. a stochastic economy with geometric growth rate fluctuating between μl = -2% and μh = -0.05% every two years.
In each case, this video plots the evolution starting from the stationary density in an economy with geometric growth rate μl = - 2%
See more in Asset Prices and Wealth Inequality).