53Our value of the survival probability /D = 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.