Brumm, Johannes; Kotlikoff, Laurence J.; Krause, Christopher - National Bureau of Economic Research - 2024
Fiscal policy in the U.S. and other countries renders intertemporal budgets non-differentiable, nonconvex, and discontinuous. Consequently, assessing work and saving responses to policy requires global optimization. This paper develops the Global Life-Cycle Optimizer (GLO), a stochastic...