@techreport{NBERw15025,
 title = "Debt, Deficits and Finite Horizons: The Stochastic Case",
 author = "Roger Farmer and Carine Nourry and Alain Venditti",
 institution = "National Bureau of Economic Research",
 type = "Working Paper",
 series = "Working Paper Series",
 number = "15025",
 year = "2009",
 month = "June",
 URL = "http://www.nber.org/papers/w15025",
 abstract = {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.},
}