An International Comparison of Generational Accounts
In: Generational Accounting around the World
AbstractThis paper summarizes findings reported in a forthcoming NBER volume entitled 'Generational Accounting Around the World.' This volume includes generational accounting studies for 17 countries. The findings are shocking. The world's leading industrial powers - the U.S., Japan, and Germany - all have severe imbalances in their generational policies. Unless currently living members of these countries pay more in net taxes or unless these countries cut their purchases of goods and services, future Americans, Japanese and Germans will face much higher rates of lifetime net taxation. Leaving current Americans untouched and maintaining the current projected time-path of government purchases will leave future Americans collectively facing about 50% higher net tax rates over their lifetimes than those facing a newborn American based on current U.S. tax-transfer policy. For future Germans, the imbalance means they would face lifetime net tax rates that are roughly twice as high as those now in place. And for future Japanese, policy inaction means lifetime net tax rates that are more than 2.5 times are high as current values. Other countries are also running imbalanced policies. Of the 17 countries studied here, five (Japan, Italy, Germany, The Netherlands, and Brazil) have extreme imbalances. Another five (the United States, Norway, Portugal, Argentina and Belgium) have severe imbalances. Three countries - Australia, Denmark and France - have substantial imbalances. Canada's appears to be essentially in generational balance. The remaining countries - New Zealand, Thailand, and Sweden - have negative imbalances; i.e. their policies, if maintained, would leave future generations facing lower lifetime net tax rates than current current newborns.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
This chapter was published in:
This item is provided by National Bureau of Economic Research, Inc in its series NBER Chapters with number 6686.
Contact details of provider:
Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.
Web page: http://www.nber.org
More information through EDIRC
Other versions of this item:
- Laurence J. Kotlikoff & Willi Leibfritz, 1998. "An International Comparison of Generational Accounts," NBER Working Papers 6447, National Bureau of Economic Research, Inc.
- H22 - Public Economics - - Taxation, Subsidies, and Revenue - - - Incidence
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.:
- Cutler, D.M. & Poterba, J.M. & Sheiner, L.M. & Summers, L.H., 1990.
"An Aging Society: Opportunity Or Challenge,"
553, Massachusetts Institute of Technology (MIT), Department of Economics.
This item has more than 25 citations. To prevent cluttering this page, these citations are listed on a separate page. reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If references are entirely missing, you can add them using this form.