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The fiscal impact of population change

  • Ronald D. Lee
  • Ryan D. Edwards

Population aging, and changing population age distributions, affect the fiscal situation through multiple channels, including the following: ; 1. Changing age distributions alter the per worker cost of providing a given age-vector of per capita benefits. For example, population aging will dramatically increase the costs of providing even existing benefits for Social Security and Medicare. ; 2. As a qualification to point 1, we note that fluctuations in population age distribution, for example, as caused by the baby boom in the United States, and transitional changes in age distribution, for example, as the population ages, add a dimension to the problem. Such changes can be considerably more dramatic than comparisons of steady states. They raise issues of intergenerational equity and risk-sharing.

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File URL: http://www.bostonfed.org/economic/conf/conf46/conf46g1.pdf
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Article provided by Federal Reserve Bank of Boston in its journal Conference Series ; [Proceedings].

Volume (Year): 46 (2001)
Issue (Month): ()
Pages:

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Handle: RePEc:fip:fedbcp:y:2001:n:46:x:16
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  1. Tim Miller, 2001. "Increasing longevity and medicare expenditures," Demography, Springer, vol. 38(2), pages 215-226, May.
  2. Philip Oreopoulos & Alan J. Auerbach, 1999. "Analyzing the Fiscal Impact of U.S. Immigration," American Economic Review, American Economic Association, vol. 89(2), pages 176-180, May.
  3. Jonathan Gruber & David Wise, 2001. "An International Perspective on Policies for an Aging Society," NBER Working Papers 8103, National Bureau of Economic Research, Inc.
  4. Lee, Ronald & Mason, Andrew & Miller, Timothy, 2000. "From Transfers to Individual Responsibility: Implications for Savings and Capital Accumulation in Taiwan and the United States," Arbetsrapport 2000:3, Institute for Futures Studies.
  5. Storesletten, Kjetil, 1998. "Sustaining Fiscal Policy Through Immigration," Seminar Papers 664, Stockholm University, Institute for International Economic Studies.
  6. Vicki Freedman & Linda Martin, 1999. "The role of education in explaining and forecasting trends in functional limitations among older Americans," Demography, Springer, vol. 36(4), pages 461-473, November.
  7. Deborah Roseveare & Willi Leibfritz & Douglas Fore & Eckhard Wurzel, 1996. "Ageing Populations, Pension Systems and Government Budgets: Simulations for 20 OECD Countries," OECD Economics Department Working Papers 168, OECD Publishing.
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