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Generational Accounts for The Netherlands: An Update

  • A. Bovenberg
  • Harry Rele

This paper extends the standard generational accounting methodologyby incorporating prospective changes in the economic environment,assigning the benefits of government purchases to generations,distinguishing between public consumption and public investment,and transforming the generational accounts into government budgets.It applies the methodology to the Netherlands. An expected increasein labor-force participation almost offsets the adverse effectof aging on the sustainability of the Dutch public finances.Since the rise in labor-force participation occurs before thebulk of the aging, the government will have to run sizable fiscalsurpluses in the next decades in order to create the budgetaryroom for higher age-related government expenditures in laterdecades. Copyright Kluwer Academic Publishers 2000

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File URL: http://hdl.handle.net/10.1023/A:1008764817946
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Article provided by Springer in its journal International Tax and Public Finance.

Volume (Year): 7 (2000)
Issue (Month): 4 (August)
Pages: 411-430

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Handle: RePEc:kap:itaxpf:v:7:y:2000:i:4:p:411-430
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  1. Alan J. Auerbach & Jagadeesh Gokhale & Laurence J. Kotlikoff, 1991. "Generational Accounts: A Meaningful Alternative to Deficit Accounting," NBER Chapters, in: Tax Policy and the Economy, Volume 5, pages 55-110 National Bureau of Economic Research, Inc.
  2. W.H. Buiter, 1995. "Generational Accounts," CEP Discussion Papers dp0237, Centre for Economic Performance, LSE.
  3. Robert Haveman, 1994. "Should Generational Accounts Replace Public Budgets and Deficits?," Journal of Economic Perspectives, American Economic Association, vol. 8(1), pages 95-111, Winter.
  4. Bovenberg, A.L., 1997. "Dutch employment growth : An analysis," Other publications TiSEM e57bc89a-f3b7-4c07-a8db-c, Tilburg University, School of Economics and Management.
  5. Diamond, Peter, 1996. "Generational Accounts and Generational Balance: An Assessment," National Tax Journal, National Tax Association, vol. 49(4), pages 597-607, December.
  6. Auerbach, Alan J. & Kotlikoff, Laurence J. & Leibfritz, Willi (ed.), 1999. "Generational Accounting around the World," National Bureau of Economic Research Books, University of Chicago Press, edition 1, number 9780226032139.
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