Before revision:  We present two applications: (i) we show that  the tails of the wealth distribution in a heterogeneous-agent dynamic general equilibrium model with idiosyncratic endowment risk decay exponentially, unlike models with investment risk where the tails may be Paretian, and (ii) we show that a random growth model for the population dynamics of Japanese prefectures is consistent with the observed Pareto exponent but only after allowing for Markovian dynamics.
After revision:  We present two applications: (i) we show that (i) the tails of the wealth distribution in a heterogeneous-agent dynamic general equilibrium model with idiosyncratic endowment risk decay exponentially, unlike models with investment risk where the tails may be Paretian, and (ii) we show that a random growth model for the population dynamics of Japanese prefectures is consistent with the observed Pareto exponent but only after allowing for Markovian dynamics.