⁶It is useful to emphasize that permanent noncapital income as defined here differs from what Deaton (1992) calls permanent income (which is often adopted in the macro literature). Deaton defines permanent income as the amount that a perfect foresight consumer could spend while leaving total (human and nonhuman) wealth constant. Relatedly, we refer to as ‘cash-on-hand’ or ‘market resources’ rather than as wealth to avoid any confusion for readers accustomed to thinking of the discounted value of future noncapital income as a part of wealth. The ‘market resources’ terminology is motivated by the model’s assumption that human wealth cannot be capitalized, an implication of anti-slavery laws.