IDEAS home Printed from https://ideas.repec.org/p/cor/louvco/2000003.html
   My bibliography  Save this paper

Debt-sharing and secession : a generational accounting approach

Author

Listed:
  • CATTOIR, Philippe
  • DOCQUIER, Frédéric

Abstract

This paper investigates one of the most important financial issues arising from a secession or a country partioning, namely the sharing of the national public debt. Extending Dreze's distributive neutrality condition, we use the generational accounting technique and propose a dynamic debt-sharing criterion which takes into account both the true debt future generations inherit and their contributive capacity. The equivalence with Dreze's static rule is only obtained in the steady growth framework in the absence of initial regional debt. An application of our criterion to the Belgian case offers striking results.

Suggested Citation

  • CATTOIR, Philippe & DOCQUIER, Frédéric, 2000. "Debt-sharing and secession : a generational accounting approach," LIDAM Discussion Papers CORE 2000003, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  • Handle: RePEc:cor:louvco:2000003
    as

    Download full text from publisher

    File URL: https://uclouvain.be/en/research-institutes/immaq/core/dp-2000.html
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    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. Martin Feldstein, 1995. "Would Privatizing Social Security Raise Economic Welfare?," NBER Working Papers 5281, National Bureau of Economic Research, Inc.
    3. Alan J. Auerbach & Jagadeesh Gokhale & Laurence J. Kotlikoff, 1994. "Generational Accounting: A Meaningful Way to Evaluate Fiscal Policy," Journal of Economic Perspectives, American Economic Association, vol. 8(1), pages 73-94, Winter.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Grégoire Rota Graziosi, 2004. "La fragmentation politique, une revue de la littérature," Revue Française d'Économie, Programme National Persée, vol. 18(4), pages 193-223.
    2. André Decoster & Xavier Flawinne & Pieter Vanleenhove, 2014. "Generational accounts for Belgium: fiscal sustainability at a glance," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 41(4), pages 663-686, November.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Cattoir, Philippe & Docquier, Frédéric, 2004. "Population Prospects and the Determination of a Debt-Sharing Rule between Seceding Regions," IZA Discussion Papers 1022, Institute of Labor Economics (IZA).
    2. Guillaume Allègre & Thomas Melonio & Xavier Timbeau, 2012. "Dépenses publiques d'éducation et inégalités. Une perspective de cycle de vie," Revue économique, Presses de Sciences-Po, vol. 63(6), pages 1055-1079.
    3. Marco Bassetto, 2009. "The Research Agenda: Marco Bassetto on the Quantitative Evaluation of Fiscal Policy Rules," EconomicDynamics Newsletter, Review of Economic Dynamics, vol. 10(2), April.
    4. Holger Bonin & Joan Gil & Concepció Patxot, 2001. "Beyond the Toledo agreement: the intergenerational impact of the Spanish Pension Reform," Spanish Economic Review, Springer;Spanish Economic Association, vol. 3(2), pages 111-130.
    5. Raffelhüschen, Bernd & Seuffert, Stefan, 2020. "Ehrbarer Staat? Wege und Irrwege der Rentenpolitik im Lichte der Generationenbilanz," Argumente zur Marktwirtschaft und Politik 148, Stiftung Marktwirtschaft / The Market Economy Foundation, Berlin.
    6. Volker Meier & Martin Werding, 2010. "Ageing and the welfare state: securing sustainability," Oxford Review of Economic Policy, Oxford University Press, vol. 26(4), pages 655-673, Winter.
    7. Metzger, Christoph, 2016. "The German statutory pension scheme: Balance sheet, cross-sectional internal rates of return and implicit tax rates," FZG Discussion Papers 63, University of Freiburg, Research Center for Generational Contracts (FZG).
    8. Pawel Kaczmarczyk, 2013. "Are immigrants a burden for the state budget? Review paper," EUI-RSCAS Working Papers p0356, European University Institute (EUI), Robert Schuman Centre of Advanced Studies (RSCAS).
    9. Siebert, Horst, 1997. "Pay-as-you-go versus capital funded pension systems: the issues," Kiel Working Papers 816, Kiel Institute for the World Economy (IfW).
    10. Karin Mayr, 2004. "The fiscal impact of immigrants in Austria--a generational accounting analysis," Economics working papers 2004-09, Department of Economics, Johannes Kepler University Linz, Austria.
    11. Keuschnigg, Christian & Keuschnigg, Mirela & Koman, Reinhard, 2000. "Public Debt and Generational Balance in Austria Lueth, Erik; Raffelhueschen, Bernd," Economics Series 80, Institute for Advanced Studies.
    12. Miyazato, Naomi, 2020. "Intergenerational Inequality and the Contract Out Policy in Public Health Care," Japan and the World Economy, Elsevier, vol. 54(C).
    13. Alan J. Auerbach & Young Jun Chun & Ilho Yoo, 2005. "The Fiscal Burden of Korean Reunification: A Generational Accounting Approach," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 61(1), pages 62-97, March.
    14. Holger Bonin, 2001. "Will it Last? An Assessment of the 2001 German Pension Reform," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 26(4), pages 547-564, October.
    15. Raffelhüschen, Bernd & Moog, Stefan, 2010. "Ehrbarer Staat? Die Generationenbilanz. Update 2010: Handlungsoptionen der Gesundheitspolitik," Argumente zur Marktwirtschaft und Politik 111, Stiftung Marktwirtschaft / The Market Economy Foundation, Berlin.
    16. Bahnsen, Lewe & Manthei, Gerrit & Raffelhüschen, Bernd, 2017. "Ehrbarer Staat? Die Generationenbilanz. Update 2017: Nachhaltigkeit im Klammergriff des Wahlkampfes," Argumente zur Marktwirtschaft und Politik 138, Stiftung Marktwirtschaft / The Market Economy Foundation, Berlin.
    17. Bahnsen, Lewe & Fetzer, Stefan & Franke, Fabian & Hagist, Christian, 2020. "Gone with the windfall – Germany's Second LTC Strengthening Act and its intergenerational implications," The Journal of the Economics of Ageing, Elsevier, vol. 17(C).
    18. Bahnsen, Lewe & Kohlstruck, Tobias & Manthei, Gerrit & Raffelhüschen, Bernd & Seuffert, Stefan & Wimmesberger, Florian, 2020. "Ehrbarer Staat? Die Generationenbilanz. Update 2020: Nachhaltigkeit im Schatten der Corona-Pandemie," Argumente zur Marktwirtschaft und Politik 152, Stiftung Marktwirtschaft / The Market Economy Foundation, Berlin.
    19. Lewe Bahnsen & Tobias Kohlstruck & Bernd Raffelhüschen & Stefan Seuffert & Florian Wimmesberger, 2020. "Fiskalische und intergenerative Auswirkungen der Corona-Pandemie," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 73(09), pages 59-65, September.
    20. Raffelhüschen, Bernd & Moog, Stefan & Müller, Christoph, 2010. "Ehrbare Staaten? Die deutsche Generationenbilanz im internationalen Vergleich: Wie gut ist Deutschland auf die demografische Herausforderung vorbereitet?," Argumente zur Marktwirtschaft und Politik 110, Stiftung Marktwirtschaft / The Market Economy Foundation, Berlin.

    More about this item

    Keywords

    debt-sharing; public debt; secession; generational accounting; distributive neutrality.;
    All these keywords.

    JEL classification:

    • H60 - Public Economics - - National Budget, Deficit, and Debt - - - General
    • H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism

    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:cor:louvco:2000003. 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: (Alain GILLIS). General contact details of provider: http://edirc.repec.org/data/coreebe.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.