Research
Job Market Paper
Title: Matching Wealth Moments with Heterogeneous Returns (2025)
Authors: Decory Edwards
Abstract. This paper aims to provide further evidence of the heterogeneous agent modelling framework’s ability to match wealth moments by adding a single source of heterogeneity across households beyond the realization of ex-post shocks to their income. I allow for households differ in the return earned on assets in a setting with rich life cycle dynamics. From there, I interpret the heterogeneity in the returns on safe assets earned by households in the context of the transmissions channel of monetary policy and its variation across the banking sector and discussing the implications of various taxation schemes when heterogeneous returns are present.
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Supplementary materials (code & replication):
- Replication repository (GitHub) — code and data to reproduce the paper’s results.