Debt, deficits and finite horizons
Subtitle: the stochastic case
By: Roger Farmer, Carine Nourry, Alain Venditti.
Contributors: Nourry, Carine.; Venditti, Alain.; National Bureau of Economic Research.
Series: NBER working paper series -- working paper 15025; Working paper series (National Bureau of Economic Research : Online) -- working paper no. 15025.
Publisher: National Bureau of Economic Research
Published: 2009
Place of publication: Cambridge, MA
Language: eng
Format: Electronic resource
Description: "We introduce a solution technique for the study of discrete time stochastic models populated by long-lived agents.  We introduce aggregate uncertainty and complete markets into a 'perpetual-youth' model of a kind first studied by Olivier Blanchard and we show that the pure-trade version of the model behaves much like the two-period overlapping generations model.  Our methods are easily generalized to economies with production and they should prove useful to researchers who seek a tractable stochastic model in which fiscal policy has real effects on aggregate allocations"--National Bureau of Economic Research web site.
Notes: Title from PDF file as viewed on 6/11/2009.

Includes bibliographical references.

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