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---

In addition to what's in Anaconda, this lecture will need the following libraries:

```{code-cell} ipython

---

tags: [hide-output]

---

```{code-cell} ipython3

:tags: [hide-output]

!pip install quantecon

```

Let's start with some imports:

```{code-cell} ipython

```{code-cell} ipython3

import matplotlib.pyplot as plt

plt.rcParams["figure.figsize"] = (11, 5) #set default figure size

import numpy as np

The class also includes a default set of parameters that we'll adopt unless otherwise specified.

```{code-cell} python3

```{code-cell} ipython3

class Household:

"""

This class takes the parameters that define a household asset accumulation

As a first example of what we can do, let's compute and plot an optimal accumulation policy at fixed prices.

```{code-cell} python3

```{code-cell} ipython3

# Example prices

r = 0.03

w = 0.956

The intersection gives equilibrium interest rates and capital.

```{code-cell} python3

```{code-cell} ipython3

A = 1.0

N = 1.0

α = 0.33

# Extract the marginal distribution for assets

asset_probs = asset_marginal(stationary_probs, am.a_size, am.z_size)

# Return K

return np.sum(asset_probs * am.a_vals)

return asset_probs @ am.a_vals

# Create an instance of Household