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Generational Accounting and the Saving Rate Decline, 1960–2000
Author(s) -
Eschker Erick
Publication year - 2005
Publication title -
public budgeting and finance
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.694
H-Index - 30
eISSN - 1540-5850
pISSN - 0275-1100
DOI - 10.1111/j.0275-1100.2005.00354.x
Subject(s) - economics , construct (python library) , value (mathematics) , government (linguistics) , demographic economics , monetary economics , philosophy , linguistics , machine learning , computer science , programming language
Government agencies in 26 countries construct generational accounts, defined as the present value of remaining lifetime net taxes that a generation can expect to pay. This paper calculates generational accounts for the United States, 1960–2000, and finds that generational account changes do not coincide with the abrupt decline in the saving rate that began in the mid‐1980s. First, transfers to the elderly, as reflected in changes to the generational accounts, increased gradually after 1960. Second, the fiscal burden placed on future generations, measured both in real terms and relative to newborns, was no higher in 2000 than in 1960.