European Economy. Reports and Studies
Generational accounting in Europa.(774 kB)
(European Economy. Reports and Studies. 06. January 1999.
Luxembourg. 215pp. Tab. Graph. Bibliogr. )
CM-27-99-152-EN-C ISBN: 92-828-8601-8
Generational accounting is an instrument for identifying the long-term implications of current fiscal and social policy. Taking into account the future demographic development, generational accounting shows which effects a prolongation of a given policy will have on the tax and transfer payments of living as well as future generations. In particular, generational accounts show whether the tax and transfer-policy of a selected base-year can be maintained into the indfinite future or whether sooner or later adjustments will be necessary in order to meet the government's intertemporal budget constraint.