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The fiscal burden of rising dependency ratios

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  • Joe Ruggeri

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  • Yang Zou
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    Abstract

    This paper explores the issue of the fiscal burden of population aging in Canada over the period from 2004 to 2026 by introducing a new methodological tool and using an approach that (a) is comprehensive with respect to government revenues and expenditures, (b) uses a fine disaggregation of government revenues and expenditures, and (c) integrates demographic, economic, and fiscal developments. The results indicate that the concerns about the ability of the existing fiscal system to withstand the pressures of population aging are unfounded. They indicate that, in the absence of an economic collapse, the existing fiscal structure will be able to handle the fiscal pressures of population aging. Instead of letting a nonexistent problem drive the course of fiscal policy in Canada, it would be more profitable to focus on avenues for making the fiscal structure a more effective tool for economic growth and human development. Copyright Springer Science+Business Media B.V. 2007

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    File URL: http://hdl.handle.net/10.1007/s11113-007-9027-8
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    Bibliographic Info

    Article provided by Springer in its journal Population Research and Policy Review.

    Volume (Year): 26 (2007)
    Issue (Month): 2 (April)
    Pages: 185-201

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    Handle: RePEc:kap:poprpr:v:26:y:2007:i:2:p:185-201

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    Web page: http://www.springerlink.com/link.asp?id=102983

    Related research

    Keywords: Population aging; Fiscal burden; Dependency ratios; Fiscal dependency;

    References

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    1. Thai-Thanh Dang & Pablo AntolĂ­n & Howard Oxley, 2001. "Fiscal Implications of Ageing: Projections of Age-Related Spending," OECD Economics Department Working Papers 305, OECD Publishing.
    2. Suzanne Kennedy & Chris Matier, . "Comparing the Long-term Fiscal Outlook for Canada and the United States Using Fiscal Gaps," Working Papers-Department of Finance Canada 2003-04, Department of Finance Canada.
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    Cited by:
    1. Laishram Ladusingh, 2013. "Financing young and elderly dependents: the case of Indian public policy," Asia-Pacific Development Journal, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), vol. 20(1), pages 121-143, June.

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