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Countries face economic shocks that result in unequal exposure to risk across generations. The Financial Crisis of 2008 and the COVID-19 pandemic are two recent and notable examples. 1 Faced with such shocks, it is desirable to share risk across generations. However, full risk sharing is not sustainable if it commits future generations to transfers they would not wish to make once they are born. The issue of the sustainability of intergenerational insurance is becoming increasingly relevant in many advanced economies as the relative standard of living of the younger generation has worsened in recent decades. 2 If this generational shift persists, future generations may be less willing to contribute to insurance arrangements than in the past. Therefore, a natural question to ask is how an optimal intergenerational insurance arrangement should be structured when there is limited enforcement of risk-sharing transfers …