Governments around the world engage in fiscal interventions targeting the poor. Using a rich dataset on income and consumption of Indian households, we estimate the distributional effects of such interventions in a heterogeneous agent model. The standard scheme of interventions that consistently...

A criticism of earnings risk models of wealth inequality is that they do not accurately capture individual's earnings risks. I construct a stochastic process that directly determines workers earnings. I use a set of new empirical moments to match moments of earnings changes in the universe of...