... adjustments.4 As already stressed, our framework can be used to address a variety of macroeconomicquestions. In this particular paper, because of its predominantly long-run focus, themonetary margin plays ... tractability $ and areassumed t o be independent of the age of agents, similar t o Blanchard (1985) and Weil(1989). However, we assume that the three demographic variables of interest, namely qzw>$w> ... cut-o feature of the empirical data set, namelyto assume that all persons at age 65 or above are assumed to have retired. Third, in calibration exercises of this type there is some leeway to x...