Generational Accounting in Latvia: Time for Action
The study seeks to analyse the long-term sustainability of fiscal policy in Latvia. Using a methodology called Generational Accounting, the net tax burdens of different currently living generations are calculated. Using these generational accounts, the residual ne tax burden of future generations is determined and it is determined that the current fiscal policy stance is not sustainable. The generational imbalance amounts to about 260% of GDP, which is near the European avarage. The necessary fiscal adjustments are relatively small, but still significant. An overall tax increase of 8.5% would be required to close the generational gap. Other policy options could be to decrease transfers by 17.5% or government consumption by 25.0%. Alternative scenarios all lead to significant generational imbalances as well. On the other hand, a number of factors not included in this study may aid Latvia in achieving generational fairness and long-term fiscal sustainability.
Volume (Year): 7 (2007)
Issue (Month): 1 (July)
|Contact details of provider:|| Postal: |
Phone: +371 67039320
Fax: +371 67039318
Web page: http://www.biceps.org
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:bic:journl:v:7:y:2007:i:1:p:35-51. See general 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: (Lelde Ivankova)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.