This paper develops and simulates a three-period life-cycle model with aggregate uncertainty. The model incudes a market in risk-free bonds. The paper studies how uncertainty in fiscal policy affects welfare, the equity premium, risk-sharing, and the caculation of generational accounts.

A study of the magnitudes of tax increases, transfer cuts, or reductions in government purchases that would be needed to rectify the huge imbalance in the generational stance of U.S. fiscal policy, concluding that congressionally proposed outlay reductions in nondefense and non-Social Security...

An assessment of the effects of proposed reductions in income and Social Security taxes on middle-income Americans and of cuts in health care spending, using the generational accounting method to examine their likely impact on both current and future national saving rates.

A presentation of the baseline generational accounts for 1992, estimating both the effect of the Omnibus Budget Reconciliation Act of 1993 and the further impact of the Clinton administration's health reform proposal.

An update of the baseline generational accounts reported in the 1993 federal budget that extends the analysis to lifetime net tax rates--the taxes that a generation pays, less the Social Security and other transfer benefits that it receives, as a share of income over its entire lifetime.

Answering the question of how much wealth inequality arises from inheritance inequality requires data that are unavailable and potentially uncollectable. The alternative approach taken here (from Blinder [1974, 1976] and Davies [1982]) is to simulate the transmission of inequality via bequests.

This paper analyzes questions related to defined contribution (DC) plans. For what types of households are statutory contribution limits likely to bind? How large is the lifetime tax benefit from participating in a DC plan and how does it vary with lifetime income? The authors find that...

An examination of the generational imbalance in current Norwegian fiscal policy, showing that despite the government's net wealth, future Norwegians could be facing lifetime net tax burdens twice as large as those confronting today's children.

How much should Americans save prior to retirement? Given Social Security's shaky financial condition, this is a critical question for baby boomers. A financial planning program-ESPlanner-is applied to data from the Health and Retirement Survey (HRS) to consider the amount that households...