IDEAS home Printed from https://ideas.repec.org/a/bic/journl/v7y2007i1p35-51.html
   My bibliography  Save this article

Generational Accounting in Latvia: Time for Action

Author

Listed:
  • Olaf J. de Groot

    (Università Bocconi, Italy)

Abstract

The study seeks to analyse the long-term sustainability of fiscal policy in Latvia. Using a methodology called Generational Accounting, the net tax burdens of different currently living generations are calculated. Using these generational accounts, the residual ne tax burden of future generations is determined and it is determined that the current fiscal policy stance is not sustainable. The generational imbalance amounts to about 260% of GDP, which is near the European avarage. The necessary fiscal adjustments are relatively small, but still significant. An overall tax increase of 8.5% would be required to close the generational gap. Other policy options could be to decrease transfers by 17.5% or government consumption by 25.0%. Alternative scenarios all lead to significant generational imbalances as well. On the other hand, a number of factors not included in this study may aid Latvia in achieving generational fairness and long-term fiscal sustainability.

Suggested Citation

  • Olaf J. de Groot, 2007. "Generational Accounting in Latvia: Time for Action," Baltic Journal of Economics, Baltic International Centre for Economic Policy Studies, vol. 7(1), pages 35-51, July.
    • Handle: RePEc:bic:journl:v:7:y:2007:i:1:p:35-51
    as

    Download full text from publisher

    File URL: https://www.tandfonline.com/doi/epdf/10.1080/1406099X.2007.10840440
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    Generational accounting; fiscal sustainability; Latvia;
    All these keywords.

    JEL classification:

    • H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs
    • H60 - Public Economics - - National Budget, Deficit, and Debt - - - General

    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:bic:journl:v:7:y:2007:i:1:p:35-51. See general information about how to correct material in RePEc.

    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.

    We have no bibliographic references for this item. You can help adding them by using 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Anna Zasova (email available below). General contact details of provider: https://edirc.repec.org/data/biceplv.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.