Saving behavior in stationary equilibrium with random discounting

We study the implications of random discount rates of future generations fo r saving behavior and capital holdings in a steady state competitive equili brium with heterogeneous population. A well-known difficulty in determinist ic economics with heterogeneous households is that in steady state only the most patient households hold capital. In this paper we state conditions un der which this random discounting is sufficient fur households other than t he most patient ones to save, We thus provide a simple and natural way of o vercoming the aforementioned difficulty.