Ensuring Fiscal Sustainability in G-7 Countries
AbstractRising longevity, falling fertility rates, and the retirement of the baby boom generation will substantially raise age-related government spending in most advanced and many emerging market countries. This paper assesses the evolution of fiscal sustainability for each of the G-7 countries using two standard primary gap indicators. The estimated fiscal adjustment required to ensure long-run fiscal sustainability is substantial for all G-7 countries. In particular, ensuring fiscal sustainability would require an average improvement in the primary balance of about 4 percentage points of GDP. While the overall adjustment required to achieve long-run fiscal sustainability in G-7 countries is large, there are significant growth benefits to putting public finances on a sustainable footing in the near term versus delayed adjustment.
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.
Bibliographic InfoPaper provided by International Monetary Fund in its series IMF Working Papers with number 07/187.
Date of creation: 01 Jul 2007
Date of revision:
Contact details of provider:
Postal: International Monetary Fund, Washington, DC USA
Phone: (202) 623-7000
Fax: (202) 623-4661
Web page: http://www.imf.org/external/pubind.htm
More information through EDIRC
This paper has been announced in the following NEP Reports:
- NEP-AGE-2007-09-16 (Economics of Ageing)
- NEP-ALL-2007-09-16 (All new papers)
- NEP-EEC-2007-09-16 (European Economics)
- NEP-MAC-2007-09-16 (Macroeconomics)
- NEP-PBE-2007-09-16 (Public Economics)
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Werding, Martin & McLennan, Stuart, 2011. "International portability of health-cost coverage : concepts and experience," Social Protection Discussion Papers 63929, The World Bank.
- Aaron George Grech, 2012.
"Evaluating the possible impact of pension reforms on future living standards in Europe,"
LSE Research Online Documents on Economics
51296, London School of Economics and Political Science, LSE Library.
- Grech, Aaron George, 2012. "Evaluating the possible impact of pension reforms on future living standards in Europe," MPRA Paper 39851, University Library of Munich, Germany.
- Aaron George Grech, 2012. "Evaluating the possible impact of pension reforms on future living standards in Europe," CASE Papers /161, Centre for Analysis of Social Exclusion, LSE.
- Murtaza H. Syed & Michael Skaarup & Tarhan Feyzioglu, 2008. "Addressing Korea's Long-Term Fiscal Challenges," IMF Working Papers 08/27, International Monetary Fund.
- Bevan, David, 2012. "Aid, Fiscal Policy, Climate Change, and Growth," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
- repec:cep:sticas:case161 is not listed on IDEAS
- Andersen, Torben M, 2008. "Fiscal Sustainability and Demographics - Should We Save or Work More?," CEPR Discussion Papers 7044, C.E.P.R. Discussion Papers.
- Volker Meier & Martin Werding, 2010.
"Ageing and the welfare state: securing sustainability,"
Oxford Review of Economic Policy,
Oxford University Press, vol. 26(4), pages 655-673, Winter.
- Meier, Volker & Werding, Martin, 2010. "Ageing and the welfare state: Securing sustainability," Munich Reprints in Economics 19194, University of Munich, Department of Economics.
- Volker Meier & Martin Werding, 2010. "Ageing and the Welfare State: Securing Sustainability," CESifo Working Paper Series 2916, CESifo Group Munich.
- Paolo Biraschi & Lorenzo Codogno & Federico Giammusso & Manuela Nenna & Juan Pradelli, . "Are Italy's public finances sustainable? The role of demographics, productivity, and labour markets," Working Papers wp2008-6, Department of the Treasury, Ministry of the Economy and of Finance.
- Andersen, Torben M., 2012. "Fiscal sustainability and demographics – Should we save or work more?," Journal of Macroeconomics, Elsevier, vol. 34(2), pages 264-280.
- Martin Werding & Stuart McLennan, 2012. "International Portability of Health-Cost Cover: Mobility, Insurance, and Redistribution," CESifo Working Paper Series 3952, CESifo Group Munich.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Jim Beardow) or (Hassan Zaidi).
If references are entirely missing, you can add them using this form.