Generational Accounting versus Computable General Equilibrium
AbstractGenerational Accounting is only a shortcut to a general equilibrium analysis because it is assumed that individual decisions are unaffected by policy reforms. Nonetheless only two studies examine the accuracy of Generational Accounting, but Fehr and Kotlikoff (1996) consider changes in individual decisions and current tax adaptations to balance the Budget. Thus their approach is inappropriate as a means to compare both methods as they are used in reality. Raffelhüschen and Risa (1997) use a very simple model and simulate very stylized policy changes. So we need to carry out a new examination. Our examples are the recent fiscal reforms in Germany which encompass an income tax reform and a pension reform. The findings are that Generational Accounting is a bad shortcut for the incidence of the income tax reform, but gives a good impression of the quality and sign of the incidence for all but the younger cohorts in the case of the pension reform, and that the Fehr and Kotlikoff approach is misleading.
Download InfoTo our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Bibliographic InfoArticle provided by Mohr Siebeck, Tübingen in its journal FinanzArchiv.
Volume (Year): 58 (2001)
Issue (Month): 3 (July)
Contact details of provider:
Web page: http://www.mohr.de/fa
Postal: Mohr Siebeck GmbH & Co. KG, P.O.Box 2040, 72010 Tübingen, Germany
Find related papers by JEL classification:
- D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
- H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
- H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies
- H62 - Public Economics - - National Budget, Deficit, and Debt - - - Deficit; Surplus
- J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Rafflhuschen, B. & Risa, A.E., 1997. "Generational Accounting and intergenerational Welfare," Norway; Department of Economics, University of Bergen 164, Department of Economics, University of Bergen.
- Homburg, Stefan, 1997.
"Old-age Pension Systems: A Theoretical Evaluation,"
EconStor Open Access Articles,
ZBW - German National Library of Economics, pages 233-246.
- Hirte, Georg, 2001. "Pension Policies for an Aging Society," BeitrÃ¤ge zur Finanzwissenschaft, Mohr Siebeck, TÃ¼bingen, edition 1, volume 14, number urn:isbn:9783161475399, July.
- Alan J. Auerbach & Jagadeesh Gokhale & Laurence J. Kotlikoff, 1991.
"Generational Accounts: A Meaningful Alternative to Deficit Accounting,"
in: Tax Policy and the Economy, Volume 5, pages 55-110
National Bureau of Economic Research, Inc.
- Alan J. Auerbach & Jagadeesh Gokhale & Laurence J. Kotlikoff, 1991. "Generational accounts: a meaningful alternative to deficit accounting," Working Paper 9103, Federal Reserve Bank of Cleveland.
- Alan J. Auerbach & Jagadeesh Gokhale & Laurence J. Kotlikoff, 1991. "Generational Accounts - A Meaningful Alternative to Deficit Accounting," NBER Working Papers 3589, National Bureau of Economic Research, Inc.
- Homburg, Stefan, 2014.
"The Efficiency of Unfunded Pension Schemes,"
Hannover Economic Papers (HEP)
dp-523, Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät.
- Georg Hirte, 2002. "Welfare and Macroeconomic Effects of the German Pension Acts of 1992 and 1999: A Dynamic CGE Study," German Economic Review, Verein fÃ¼r Socialpolitik, Verein fÃ¼r Socialpolitik, vol. 3(1), pages 81-106, 02.
- ConcepciÃ³ Patxot & Elisenda Renteria & Miguel SÃ¡nchez Romero & Guadalupe Souto, 2012.
"Measuring the balance of government intervention on forward and backward family transfers using NTA estimates: the modified Lee Arrows,"
MPIDR Working Papers
WP-2012-015, Max Planck Institute for Demographic Research, Rostock, Germany.
- Concepció Patxot & Elisenda Rentería & Miguel Romero & Guadalupe Souto, 2012. "Measuring the balance of government intervention on forward and backward family transfers using NTA estimates: the modified Lee arrows," International Tax and Public Finance, Springer, vol. 19(3), pages 442-461, June.
- Bonin, Holger & Patxot, Concepció & Souto, Guadalupe, 2013. "Cyclically neutral generational accounting," ZEW Discussion Papers 13-099, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- Veronika Deeg & Christian Hagist & Stefan Moog, 2009. "The fiscal outlook in Austria: an evaluation with Generational Accounts," Empirica, Springer, vol. 36(4), pages 475-499, November.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Thomas Wolpert).
If references are entirely missing, you can add them using this form.