We study the distributional effects of asset returns using a heterogeneous-agent model estimated to match the joint distribution of wealth and returns. In the model, endogenous portfolio decisions play a key role through their impact on households' wealth accumulation. We find substantial...

Recent studies highlight the adverse effects of school closures in terms of average lifetime income loss, cross-sectional inequality, and intergenerational mobility. We use a simple model of human capital formation to compare two policy instruments that can address these negative consequences:...