IDEAS home Printed from https://ideas.repec.org/a/fip/fedcpd/y2003idecn5.html
   My bibliography  Save this article

Fiscal and generational imbalances: new budget measures for new budget priorities

Author

Listed:
  • Jagadeesh Gokhale
  • Kent Smetters

Abstract

This paper describes the deficiencies of the measures used to calculate the federal budget, make revenue and spending projections, and assess the sustainability of current fiscal policies. The nature of the deficiencies hides the tremendous impact that Social Security and Medicare commitments will have on the budget in the future, given the way the programs are structured currently and the momentous demographic shift underway as the baby boom generation approaches retirement age. This paper proposes two new simple measures that will enable government officials and the public to calculate more accurately the costs of maintaining these programs into the relevant future. The measures provide a better understanding of the costs involved, when they will be incurred, and by whom.

Suggested Citation

  • Jagadeesh Gokhale & Kent Smetters, 2003. "Fiscal and generational imbalances: new budget measures for new budget priorities," Policy Discussion Papers, Federal Reserve Bank of Cleveland, issue Dec.
  • Handle: RePEc:fip:fedcpd:y:2003:i:dec:n:5
    as

    Download full text from publisher

    File URL: http://www.clevelandfed.org/Research/PolicyDis/no5dec03.pdf
    Download Restriction: no

    File URL: https://fraser.stlouisfed.org/scribd/?item_id=495638&filepath=/docs/historical/frbclev/pdp/frbclv_pdp_200312_005.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Peter Diamond, 2004. "Social Security," American Economic Review, American Economic Association, vol. 94(1), pages 1-24, March.
    2. Julie Lee & Mark McClellan & Jonathan Skinner, 1999. "The Distributional Effects of Medicare," NBER Chapters,in: Tax Policy and the Economy, Volume 13, pages 85-108 National Bureau of Economic Research, Inc.
    3. Kent Smetters, 2003. "Is the Social Security Trust Fund Worth Anything?," NBER Working Papers 9845, National Bureau of Economic Research, Inc.
    4. Kotlikoff, Laurence J., 2002. "Generational policy," Handbook of Public Economics,in: A. J. Auerbach & M. Feldstein (ed.), Handbook of Public Economics, edition 1, volume 4, chapter 27, pages 1873-1932 Elsevier.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Budget ; Fiscal policy;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:fip:fedcpd:y:2003:i:dec:n:5. 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: (4D Library). General contact details of provider: http://edirc.repec.org/data/frbclus.html .

    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 CitEc recognized a reference but did not link an item in RePEc 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.