The Heterogeneous Model of the Economy

In heterogeneous models, are you sort of clustering the population? Obviously, they can model every individual in the system. No, you actually do it differently. You do actually kind of try to model everyindividual in the economy. There's an entire cross-sectional distribution of people that looks just like what you'd see in the data. People may have this hand to mouth status where they're constrained for some years or for a given amount of time. But then they may also leave that hand to mouth state again.