Economic and demographic outcomes are determined jointly in a dynamic general equilibrium model of longevity, fertility and growth. Reproductive agents in overlapping generations mature safely through two periods of life and face an endogenous probability of surviving for a third period. Given...

This paper sets up an OLG economy with endogenous life expectancy to study how fiscal policy that redistributes between generations can open the door to sunspot equilibria. Agents invest independently in their own human capital, produce and consume output, and receive a pension upon retirement....