IDEAS home Printed from https://ideas.repec.org/p/ags/pugtwp/333315.html
   My bibliography  Save this paper

To Have and Have Not - Evaluating the costs and benefits of the welfare state with an AGE model of Finland with Intergenerational Accounting

Author

Listed:
  • Honkatukia, Juha
  • Vaittinen, Risto

Abstract

The aging of the population affects most European economies and challenges the sustainability of public funding in many of them. Aging constitutes a twin problem for the economy, as taking care of the growing elderly population ties up more labour in the care sectors while at the same time crowding out other service and manufacturing sectors. The problem is most visible in countries, where these services are publicly provided and funded, such as the Nordic countries, where aging translates into increasing tax burdens shouldered by the progressively smaller working age cohorts. Thus, while the provision of universally available health care is very much at the heart of the Nordic welfare state, the uncertainties of the benefits of the welfare state of the future combined with the present-day certainties of having to face the bill may be undermining the legitimacy of the Nordic model in the eyes of younger generations. The alternative would be a more market-driven provision of welfare services. Whether and how this would beneficial has not been studied. In the current study, we consider the economics of these inter-generational issues. In particular, we model the inter-generational distribution of the benefits of public health and social care provision and the burden of its financing.

Suggested Citation

  • Honkatukia, Juha & Vaittinen, Risto, 2021. "To Have and Have Not - Evaluating the costs and benefits of the welfare state with an AGE model of Finland with Intergenerational Accounting," Conference papers 333315, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    • Handle: RePEc:ags:pugtwp:333315
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/333315/files/10808.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Honkatukia, Juha, 2011. "Three takes on sustainability," Research Reports P58, VATT Institute for Economic Research.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jukka Lassila & Tarmo Valkonen, 2018. "Longevity, Working Lives, And Public Finances," Contemporary Economic Policy, Western Economic Association International, vol. 36(3), pages 467-482, July.
    2. Korkeamäki, Ossi, 2012. "Essays on labour demand and wage formation," Research Reports P60, VATT Institute for Economic Research.
    3. Moisio, Antti, 2012. "Rethinking local government: Essays on municipal reform," Research Reports P61, VATT Institute for Economic Research.
    4. Honkatukia, Juha, 2019. "Evaluating the welfare effects of public health care provision - an integrated, regional AGE model for Finland," Conference papers 333101, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    5. Lassila, Jukka, 2018. "Aggregate Risks, Intergenerational Risk-Sharing and Fiscal Sustainability in the Finnish Earnings-Related Pension System," ETLA Working Papers 57, The Research Institute of the Finnish Economy.
    6. Moisio, Antti, 2012. "Rethinking local government: Essays on municipal reform," Research Reports 61, VATT Institute for Economic Research.

    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:ags:pugtwp:333315. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/gtpurus.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.