We study the impact of a government spending shock on the distribution of income and wealth between cohorts in a dynamic stochastic Overlapping Generations model with two types of households, Ricardian households and rule-of-thumb consumers. We demonstrate that an unexpected increase in...

We analyze the US public sector balance sheet and project it forward under the assumption that current policies remain in place. We first document the history of the balance sheet and its components since World War II, with a detailed account of its evolution during and after the global...

Frontmatter -- Contents -- List of Figures -- List of Tables -- Preface -- Main Symbols -- Part I. From the Short Run to the Long -- 1 Introduction: Toward a Classical Growth Model -- 2 The Nature of the Long Run -- Part II. Long-run Models of Fiscal Policy -- 3 A Two-Class Model -- 4 Saving and...