Generational Accounting in Korea
55 Pages Posted: 21 Sep 2003 Last revised: 13 Oct 2022
Date Written: September 2003
Abstract
This paper reassesses the long-term fiscal position of Korea using Generational Accounting, modified to reflect the special features of the Korean fiscal situation, such as prospective changes in public pension benefit profiles and social welfare expenditures due to the maturing of public pensions, increasing demand for social welfare expenditures, and population aging. Our findings suggest that unless policy toward existing generations is substantially altered, future generations will face an excessively heavy fiscal burden. For reasonable growth and interest rate assumptions, the difference between 2000 newborns and those born after 2000 ranges from 60% to 120%. We also find that a substantial part of the fiscal burden on the future generations is explained by the long-run budgetary imbalance of public pensions and Medical Insurance.
Suggested Citation: Suggested Citation
Do you have negative results from your research you’d like to share?
Recommended Papers
-
Population Aging, Fiscal Policies, and National Saving: Predictions for Korean Economy
-
The Effects of Demographic Trends on Consumption, Saving and Government Expenditures in the U.S
-
The Fiscal Burden of Korean Reunification: A Generational Accounting Approach
By Alan J. Auerbach, Young-jun Chun, ...
-
By Serge Besanger and Ross S. Guest
-
The Long-Run Sustainability of Fiscal Policy in Mexico: A Generational Accounting Approach
-
Generational Accounting as a Tool to Evaluate the Fiscal Sustainability of Estonia