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Generational Accounting in Turkey

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  • Damla Haciibrahimoglu

    ()
    (Department of Economics, METU)

  • Pinar Derin-Gure

    ()
    (Department of Economics, METU)

Abstract

Generational Accounting (GA), developed by Auerbach. Gokhale and Kotlikoff (1991) is an alternative and dynamic method employed in measuring the impact of existing fiscal policies on current and future generations. In contrast to the traditional and static measures of fiscal sustainability, GA method reveals the intergenerational distribution of tax burden and helps identifying the policies that can alleviate the generational imbalance. This paper constructs and presents the first set of generational accounts for Turkey in an attempt to measure the generational gap and compare the Turkish intergenerational fiscal outlook to a number of developed and developing countries. Findings in the paper suggest that there exists a 24.3% fiscal imbalance to the disadvantage of future generations in Turkey. Several hypothetical policy experiments have been implemented in the paper to achieve the generational balance in Turkey.

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File URL: http://www.erc.metu.edu.tr/menu/series13/1301.pdf
File Function: First version, 2013
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Bibliographic Info

Paper provided by ERC - Economic Research Center, Middle East Technical University in its series ERC Working Papers with number 1301.

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Length: 59 pages
Date of creation: Jan 2013
Date of revision: Jan 2013
Handle: RePEc:met:wpaper:1301

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Keywords: Generational Accounting; Fiscal Sustainability; Turkish Fiscal System;

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References

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