Note on Type Distribution of Heterogeneous Agents

In dealing with variety of heterogeneous agent models where agents might have zero measure, and where agents’ type includes continuous variable (like asset holding), we need a consistent way to keep track of the type distribution of agents. That’s why we need the help of the measure theory. We will study the minimum set of knowledge on the measure theory to deal with the issue. The part of this note is based on the Appendix of Rı́os-Rull (1999), or the note written by Josep Pijoan-Mas.