around the generation subject to the birth rate shock. In a limiting case, we show that an i.i.d birth rate shock translates … into an i.i.d. generational consumption shock. In other words, each generation bears all of the risk associated with their … behavior of the economy in response to a birth rate shock. …

negative shock transmits to consumption compared to 9% of an equal-sized positive shock – and the pass-through increases as the … shock worsens. Our results are consistent with surveys of consumption responses to hypothetical events and suggest that tail …