young ensure smooth consumption of the old. Second, consumption of the young and the old always move in the same direction … risk-sharing between generations. Third, persistent increases in longevity will lead to lower total consumption of the old … (and thus certainly lower per-period consumption of the old) as well as the young as well as higher work effort of the …

consumption, that a deficit spending cut stimulates the economy for the first 4 quarters but has a low median multiplier of 0 ….5, and that a surprise tax increase has a contractionary effect on output, consumption and investment. Our results differ …