Title: Debt, deficits and finite horizons
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.