²⁵The only notable difference between the KS-JEDC and the original Krusell and Smith (1998) model is the introduction of unemployment insurance in the KS-JEDC version, which does not matter much for any substantive results. The key difference between our model described in section 4.1 and the KS-JEDC model is the income process. In addition, households in the KS-JEDC model do not die.