The fiscal burden of rising dependency ratios

The fiscal burden of rising dependency ratios This paper explores the issue of the fiscal burden of population aging in Canada over the period from 2004 to 2026 by introducing a new methodological tool and using an approach that (a) is comprehensive with respect to government revenues and expenditures, (b) uses a fine disaggregation of government revenues and expenditures, and (c) integrates demographic, economic, and fiscal developments. The results indicate that the concerns about the ability of the existing fiscal system to withstand the pressures of population aging are unfounded. They indicate that, in the absence of an economic collapse, the existing fiscal structure will be able to handle the fiscal pressures of population aging. Instead of letting a nonexistent problem drive the course of fiscal policy in Canada, it would be more profitable to focus on avenues for making the fiscal structure a more effective tool for economic growth and human development. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Population Research and Policy Review Springer Journals

The fiscal burden of rising dependency ratios

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Publisher
Kluwer Academic Publishers
Copyright
Copyright © 2007 by Springer Science+Business Media B.V.
Subject
Social Sciences; Demography; Sociology, general; Population Economics
ISSN
0167-5923
eISSN
1573-7829
D.O.I.
10.1007/s11113-007-9027-8
Publisher site
See Article on Publisher Site

Abstract

This paper explores the issue of the fiscal burden of population aging in Canada over the period from 2004 to 2026 by introducing a new methodological tool and using an approach that (a) is comprehensive with respect to government revenues and expenditures, (b) uses a fine disaggregation of government revenues and expenditures, and (c) integrates demographic, economic, and fiscal developments. The results indicate that the concerns about the ability of the existing fiscal system to withstand the pressures of population aging are unfounded. They indicate that, in the absence of an economic collapse, the existing fiscal structure will be able to handle the fiscal pressures of population aging. Instead of letting a nonexistent problem drive the course of fiscal policy in Canada, it would be more profitable to focus on avenues for making the fiscal structure a more effective tool for economic growth and human development.

Journal

Population Research and Policy ReviewSpringer Journals

Published: Mar 27, 2007

References

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