VI Generational Accounts for Sweden
Author:
Mr. Robert P. Hagemann
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Abstract

This section provides an alternative perspective on the stance of fiscal policy in Sweden. In particular, it utilizes generational accounting to assess in part the extent to which policies adopted in November 1994 have reduced the fiscal burden imposed on future taxpayers.1 Generational accounts provide estimates of the remaining lifetime net taxes of persons born at different times under certain economic and demographic assumptions. Although still a subject of intense debate, generational accounting has received growing attention from fiscal analysts and policymakers in recent years.2 The Lindbeck Commission (Lindbeck and others (1994)) recommended that generational accounts be calculated for Sweden. This section provides a brief description of generational accounting, which is followed by estimates of generational accounts in Sweden under policies in effect prior to the recent elections, as well as estimates that reflect implementation of a number of policies announced by the new Government.

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