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“An Analysis of U.S. Fiscal and Generational Imbalances :, Who Will Pay and How?”, Nicoletta Batini, Julia Guerreiro, Giovanni Callegari

This paper updates existing measures of the U.S. fiscal gap to include federal laws up to and including the mid-December 2010 federal fiscal stimulus. It then applies the methodology of generational accounting to establish how the burden of adjustment required to attain fiscal sustainability is shared across generations. We find that the U.S. fiscal and generational imbalances are large under plausible parametric assumptions, and, while not much affected by the financial crisis, they have not improved much by the passing of the Final Healthcare Legislation. We find that, under our baseline scenario, a full elimination of the fiscal and generational imbalances would require all taxes to go up and all transfers to be cut immediately and permanently by 35 percent. A delay in the adjustment makes it more costly
Table Of Contents
Cover Page; Title Page; Copyright Page; Contents; I. Introduction; 1. Evolution of U.S. Federal Public Debt Held by the Public; II. Methodology; A. What is the Fiscal Gap?; B. What Are Generational Accounts?; 2. How Are Generational Accounts Built; 3. Tax Profiles by Age and Sex; 4. Transfer Profiles by Age and Sex; C. Scenarios; 5. Baseline and Optimistic Scenarios; 6. Comparison of Medicare and Social Security Projection, 1995-2010; 7. Path of the Discount Rate Under Different Assumptions on r; 8. Comparison of CPS- and SCF-based Profiles of Individual Income Taxes
Literary Form
non fiction
Description based upon print version of record
Physical Description
1 online resource (56 p.)
Specific Material Designation
Form Of Item

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