Smoothing the fiscal costs of population ageing in Australia: Effects on Intergenerational Equity and Social Welfare.

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Title Smoothing the fiscal costs of population ageing in Australia: Effects on Intergenerational Equity and Social Welfare.
Author Guest, Ross
Journal Name The Economic Record
Year Published 2008
Place of publication New Jersey
Publisher Blackwell
Abstract This paper applies an overlapping generations model in order to evaluate the case for smoothing the fiscal costs associated with population ageing. The motivation is the establishment in Australia of the Future Fund which acts to smooth the tax burden over time. The conclusion is that tax smoothing of the order implied by the Future Fund yields a gain in social welfare in the order of 1.0 per cent in equivalent annual increases in GDP. All current generations of workers and retired workers are worse off, with middle-aged workers the worst affected, but future generations are better off and by larger magnitudes.
Peer Reviewed Yes
Published Yes
Publisher URI http://www.wiley.com/bw/journal.asp?ref=0013-0249
Alternative URI http://dx.doi.org/10.1111/j.1475-4932.2008.00461.x
Copyright Statement Copyright 2008 Wiley-Blackwell Publishing. This is the author-manuscript version of the paper. Reproduced in accordance with the copyright policy of the publisher. The definitive version is available at www.interscience.wiley.com
Volume 84
Issue Number 265
Page from 177
Page to 192
ISSN 0013-0249
Date Accessioned 2008-12-09
Date Available 2009-03-03T22:28:21Z
Language en_AU
Research Centre Griffith Asia Institute
Faculty Griffith Business School
Subject PRE2009-Macroeconomics (incl. Monetary and Fiscal Theory)
URI http://hdl.handle.net/10072/21589
Publication Type Journal Articles (Refereed Article)
Publication Type Code c1

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