diff --git a/.github/workflows/hark.yml b/.github/workflows/hark.yml
index eca382a58..729e282d0 100644
--- a/.github/workflows/hark.yml
+++ b/.github/workflows/hark.yml
@@ -21,7 +21,7 @@ jobs:
       max-parallel: 5
       matrix:
         os: [ubuntu-latest, macos-latest, windows-latest]
-        python-version: [3.8, 3.9, "3.10"]
+        python-version: ["3.10"]
 
     steps:
       - uses: actions/checkout@v3
diff --git a/HARK/abstract/tests/consindshk.yml b/HARK/abstract/tests/consindshk.yml
new file mode 100644
index 000000000..5979c85bc
--- /dev/null
+++ b/HARK/abstract/tests/consindshk.yml
@@ -0,0 +1,39 @@
+---
+states: !StateSpace
+  variables:
+    - !State
+      name: m
+      short_name: money
+      long_name: market resources
+      latex_repr: \mNrm
+    - !State
+      name: &name stigma
+      short_name: &short_name risky share
+      long_name: &long_name risky share of portfolio
+      latex_repr: &latex_repr \stigma
+
+actions: !ActionSpace
+  variables:
+    - !Action
+      name: c
+      short_name: consumption
+      long_name: consumption
+      latex_repr: \cNrm
+    - !Action
+      name: *name
+      short_name: *short_name
+      long_name: *long_name
+      latex_repr: *latex_repr
+
+post_states: !PostStateSpace
+  variables:
+    - !PostState
+      name: a
+      short_name: assets
+      long_name: savings
+      latex_repr: \aNrm
+    - !PostState
+      name: *name
+      short_name: *short_name
+      long_name: *long_name
+      latex_repr: *latex_repr
diff --git a/HARK/abstract/tests/consindshk_full.yml b/HARK/abstract/tests/consindshk_full.yml
new file mode 100644
index 000000000..0d9d59ee3
--- /dev/null
+++ b/HARK/abstract/tests/consindshk_full.yml
@@ -0,0 +1,52 @@
+---
+states: !StateSpace
+  variables:
+    - !State
+      name: m
+      short_name: money
+      long_name: market resources
+      latex_repr: \mNrm
+    - !State
+      name: &name stigma
+      short_name: &short_name risky share
+      long_name: &long_name risky share of portfolio
+      latex_repr: &latex_repr \stigma
+
+actions: !ActionSpace
+  variables:
+    - !Action
+      name: c
+      short_name: consumption
+      long_name: consumption
+      latex_repr: \cNrm
+    - !Action
+      name: *name
+      short_name: *short_name
+      long_name: *long_name
+      latex_repr: *latex_repr
+
+post_states: !PostStateSpace
+  variables:
+    - !PostState
+      name: a
+      short_name: assets
+      long_name: savings
+      latex_repr: \aNrm
+    - !PostState
+      name: *name
+      short_name: *short_name
+      long_name: *long_name
+      latex_repr: *latex_repr
+
+parameters: !Parameters
+  variables:
+    - !Parameter
+      name: DiscFac
+      short_name: discount factor
+      long_name: discount factor
+      latex_repr: \beta
+    - !Parameter
+      name: CRRA
+      short_name: risk aversion
+      long_name: coefficient of relative risk aversion
+      latex_repr: \rho
diff --git a/HARK/abstract/tests/test_variables.py b/HARK/abstract/tests/test_variables.py
new file mode 100644
index 000000000..85f8b3372
--- /dev/null
+++ b/HARK/abstract/tests/test_variables.py
@@ -0,0 +1,19 @@
+import unittest
+
+import numpy as np
+import yaml
+
+import HARK.abstract.variables
+
+
+class test_pyyaml(unittest.TestCase):
+    def setUp(self):
+        self.path = "HARK/abstract/tests/"
+
+    def test_partial(self):
+        with open(self.path + "consindshk.yml") as f:
+            data = yaml.safe_load(f)
+
+    def test_full(self):
+        with open(self.path + "consindshk_full.yml") as f:
+            data = yaml.safe_load(f)
diff --git a/HARK/abstract/variables.py b/HARK/abstract/variables.py
new file mode 100644
index 000000000..d2e9c9479
--- /dev/null
+++ b/HARK/abstract/variables.py
@@ -0,0 +1,277 @@
+from dataclasses import dataclass, field
+from typing import Mapping, Optional, Union
+from warnings import warn
+
+import numpy as np
+import xarray as xr
+from yaml import SafeLoader, YAMLObject
+
+rng = np.random.default_rng()
+
+
+@dataclass
+class Variable(YAMLObject):
+    """
+    Abstract class for representing variables. Variables are the building blocks
+    of models. They can be parameters, states, actions, shocks, or auxiliaries.
+    """
+
+    name: str  # The name of the variable, required
+    attrs: dict = field(default_factory=dict, kw_only=True)
+    short_name: str = field(default=None, kw_only=True)
+    long_name: str = field(default=None, kw_only=True)
+    latex_repr: str = field(default=None, kw_only=True)
+    yaml_tag: str = field(default="!Variable", kw_only=False)
+    yaml_loader = SafeLoader
+
+    def __post_init__(self):
+        for key in ["long_name", "short_name", "latex_repr"]:
+            self.attrs.setdefault(key, None)
+        self.name = self.name.strip()
+        if not self.name:
+            raise ValueError("Empty variable name")
+
+    @classmethod
+    def from_yaml(cls, loader, node):
+        fields = loader.construct_mapping(node, deep=True)
+        return cls(**fields)
+
+    def __repr__(self):
+        """
+        String representation of the variable.
+
+        Returns:
+        str: The string representation of the variable.
+        """
+        return f"{self.__class__.__name__}({self.name})"
+
+
+@dataclass
+class VariableSpace(YAMLObject):
+    """
+    Abstract class for representing a collection of variables.
+    """
+
+    variables: list[Variable]
+    yaml_tag: str = field(default="!VariableSpace", kw_only=True)
+    yaml_loader = SafeLoader
+
+    def __post_init__(self):
+        """
+        Save the variables in a dictionary for easy access.
+        """
+        self.variables = {var.name: var for var in self.variables}
+
+    @classmethod
+    def from_yaml(cls, loader, node):
+        fields = loader.construct_mapping(node, deep=True)
+        return cls(**fields)
+
+
+@dataclass(kw_only=True)
+class Parameter(Variable):
+    """
+    A `Parameter` is a variable that has a fixed value.
+    """
+
+    value: Union[int, float] = 0
+    yaml_tag: str = "!Parameter"
+    yaml_loader = SafeLoader
+
+    def __repr__(self):
+        """
+        String representation of the parameter.
+
+        Returns:
+        str: The string representation of the parameter.
+        """
+        return f"{self.__class__.__name__}({self.name}, {self.value})"
+
+
+@dataclass
+class Parameters(VariableSpace):
+    """
+    A `Parameters` is a collection of parameters.
+    """
+
+    yaml_tag: str = "!Parameters"
+
+
+@dataclass
+class Auxiliary(Variable):
+    """
+    Class for representing auxiliaries. Auxiliaries are abstract variables that
+    have an array structure but are not states, actions, or shocks. They may
+    include information like domain, measure (discrete or continuous), etc.
+    """
+
+    array: Union[list, np.ndarray, xr.DataArray] = None
+    domain: Union[list, tuple] = field(default=None, kw_only=True)
+    is_discrete: bool = field(default=False, kw_only=True)
+    yaml_tag: str = field(default="!Auxiliary", kw_only=True)
+
+
+@dataclass
+class AuxiliarySpace(VariableSpace):
+    """
+    A `AuxiliarySpace` is a collection of auxiliary variables.
+    """
+
+    yaml_tag: str = "!AuxiliarySpace"
+
+
+@dataclass(kw_only=True)
+class State(Auxiliary):
+    """
+    Class for representing a state variable.
+    """
+
+    yaml_tag: str = "!State"
+
+    def assign_values(self, values):
+        return make_state_array(values, self.name, self.attrs)
+
+    def discretize(self, min, max, N, method):
+        # linear for now
+        self.assign_values(np.linspace(min, max, N))
+
+
+@dataclass(kw_only=True)
+class StateSpace(AuxiliarySpace):
+    states: Mapping[str, State] = field(init=False)
+    yaml_tag: str = "!StateSpace"
+
+    def __post_init__(self):
+        super().__post_init__()
+        self.states = self.variables
+
+
+@dataclass(kw_only=True)
+class PostState(State):
+    yaml_tag: str = "!PostState"
+
+
+@dataclass(kw_only=True)
+class PostStateSpace(StateSpace):
+    post_states: Mapping[str, State] = field(init=False)
+    yaml_tag: str = "!PostStateSpace"
+
+    def __post_init__(self):
+        super().__post_init__()
+        self.post_states = self.variables
+
+
+@dataclass(kw_only=True)
+class Action(Auxiliary):
+    """
+    Class for representing actions. Actions are variables that are chosen by the agent.
+    Can also be called a choice, control, decision, or a policy.
+
+    Args:
+        Variable (_type_): _description_
+    """
+
+    is_optimal: bool = True
+    yaml_tag: str = "!Action"
+
+    def discretize(self, *args, **kwargs):
+        warn("Actions cannot be discretized.")
+
+
+@dataclass(kw_only=True)
+class ActionSpace(AuxiliarySpace):
+    actions: Mapping[str, State] = field(init=False)
+    yaml_tag: str = "!ActionSpace"
+
+    def __post_init__(self):
+        super().__post_init__()
+        self.actions = self.variables
+
+
+@dataclass(kw_only=True)
+class Shock(Variable):
+    """
+    Class for representing shocks. Shocks are variables that are not
+    chosen by the agent.
+    Can also be called a random variable, or a state variable.
+
+    Args:
+        Variable (_type_): _description_
+    """
+
+    yaml_tag: str = "!Shock"
+
+
+@dataclass(kw_only=True)
+class ShockSpace(VariableSpace):
+    shocks: list[Shock]
+    yaml_tag: str = "!ShockSpace"
+
+    def __post_init__(self):
+        super().__post_init__()
+        self.shocks = self.variables
+
+
+def make_state_array(
+    values: np.ndarray,
+    name: Optional[str] = None,
+    attrs: Optional[dict] = None,
+) -> xr.Dataset:
+    """
+    Function to create a state with given values, name and attrs.
+
+    Parameters:
+    values (np.ndarray): The values for the state.
+    name (str, optional): The name of the state. Defaults to 'state'.
+    attrs (dict, optional): The attrs for the state. Defaults to None.
+
+    Returns:
+    State: An xarray DataArray representing the state.
+    """
+    # Use a default name only when no name is provided
+    name = name or f"state{rng.integers(0, 100)}"
+    attrs = attrs or {}
+
+    return xr.Dataset(
+        {
+            name: xr.DataArray(
+                values,
+                name=name,
+                dims=(name,),
+                attrs=attrs,
+            )
+        }
+    )
+
+
+def make_states_array(
+    values: Union[np.ndarray, list],
+    names: Optional[list[str]] = None,
+    attrs: Optional[list[dict]] = None,
+) -> xr.Dataset:
+    """
+    Function to create states with given values, names and attrs.
+
+    Parameters:
+    values (Union[np.ndarray, States]): The values for the states.
+    names (list[str], optional): The names of the states. Defaults to None.
+    attrs (list[dict], optional): The attrs for the states. Defaults to None.
+
+    Returns:
+    States: An xarray Dataset representing the states.
+    """
+    if isinstance(values, list):
+        values_len = len(values)
+    elif isinstance(values, np.ndarray):
+        values_len = values.shape[0]
+
+    # Use default names and attrs only when they are not provided
+    names = names or [f"state{rng.integers(0, 100)}" for _ in range(values_len)]
+    attrs = attrs or [{}] * values_len
+
+    states = [
+        make_state_array(value, name, attr)
+        for value, name, attr in zip(values, names, attrs)
+    ]
+
+    return xr.merge([states])
diff --git a/requirements/base.txt b/requirements/base.txt
index 5821f865e..f6443b8bc 100644
--- a/requirements/base.txt
+++ b/requirements/base.txt
@@ -5,6 +5,7 @@ networkx>=3
 numba>=0.56
 numpy>=1.23
 pandas>=1.5
+pyyaml
 quantecon
 scipy>=1.10
 seaborn>=0.12