This is my honors project in economics advised by Mario Solis-Garcia.
For the project, I was interested in how people of different wealth and income levels respond to business cycle shocks. To examine that, I use a heterogeneous agent New Keynesian (HANK) model with 7 business cycle shocks. I then estimate the effects of the shocks using Bayesian methods in the sequence space and perform a historical decomposition of each of the shocks. Using the estimated parameters and paths for each of the shocks, I examine how different households act within the model.
In March 2025, I won the Best Undergraduate Paper Award at the Midwest Economics Association’s annual meeting for this paper. The project is still ongoing, and the draft here will be updated periodically.