• Table of Contents
    • Abstract
    • Keywords
    • Article
      • Generational accounting method
      • Generational accounts for the United States
      • Lifetime net tax rates and generational balance
      • Criticisms of generational accounting
      • Final remarks
    • See Also
    • Bibliography
    • How to cite this article

generational accounting

Jagadeesh Gokhale
From The New Palgrave Dictionary of Economics, Second Edition, 2008
Edited by Steven N. Durlauf and Lawrence E. Blume
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Abstract

Many government programmes transfer resources between different population groups. Programmes to provide retirement and health security levy taxes on workers to finance transfers to retirees. Initiating or expanding such programmes often redistributes wealth across generations by altering their lifetime tax burdens. Although standard budget measures such as national debt and deficits do not fully reflect them, such public intergenerational redistributions could substantially affect different generations' economic choices. Generational accounting measures the size of prospective net tax burdens facing different generations under current government tax and expenditure policies. It also analyses how those fiscal burdens would change under alternative policies.
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Keywords

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Article

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How to cite this article

Gokhale, Jagadeesh. "generational accounting." The New Palgrave Dictionary of Economics. Second Edition. Eds. Steven N. Durlauf and Lawrence E. Blume. Palgrave Macmillan, 2008. The New Palgrave Dictionary of Economics Online. Palgrave Macmillan. 31 July 2014 <http://www.dictionaryofeconomics.com/article?id=pde2008_G000203> doi:10.1057/9780230226203.0627

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