^{53}Our value of the survival probability = 1 − 0.00625 implies that 8 percent of households are older
than 100 years. To keep the model consistent we keep them in the economy. However, the results essentially do
not change—under the FBS aggregate shocks, the aggregate MPC is 0.43 instead of 0.42—if we alternatively
replace the 100-year-olds with newborns (assuming they do not anticipate being replaced). This is reasonable
given the small number of such households and given that the consumption function is almost linear at high
levels of wealth.