New Economics Papers
on Public Finance
Issue of 2011‒06‒04
three papers chosen by

  1. Optimal Commodity Taxation and Redistribution within Households By Olivier Bargain; Olivier Donni
  2. A fiscal outlook for Poland using Generational Accounts By Janusz Jablonowski; Christoph Müller; Bernd Raffelhüschen
  3. Long-Term Fiscal Effects of Public Pension Reform in Norway — A Generational Accounting Analysis By Christian Hagist; Bernd Raffelhüschen; Alf Erling Risa; Erling Vårdal

  1. By: Olivier Bargain (University College Dublin); Olivier Donni (University of Cergy-Pontoise)
    Abstract: Using a collective model of consumption, we characterize optimal commodity taxes aimed at targeting specific individuals within the household. The main message is that distortionary indirect taxation can circumvent the agency problem of the household. Essentially, taxation should discourage less the consumption of a certain group of goods - those for which the slope of the Engel curves is larger for the targeted person.
    Keywords: optimal commodity taxation, targeting, intrahousehold distribution
    Date: 2011–03–28
  2. By: Janusz Jablonowski; Christoph Müller (Research Center for Generational Contracts, University of Freiburg); Bernd Raffelhüschen (Research Center for Generational Contracts, University of Freiburg)
    Abstract: During the next few decades the populations of most developed countries will grow older and older as a result of the low fertility rates since the 1970s and/or the continuously increasing life expectancy. Poland, one of the biggest countries in Central Europe, will be confronted rather seriously by this development. Generational Accounting which was introduced in the early nineties, can illustrate the effects of this ageing process on a country’s fiscal situation. We show that the demographic development produces a major challenge for the long term stability of Polish public finances. In particular the healthcare system deserves special attention for policy makers in the medium and long run, whilst the general pension system shall stabilise in the long term.
    Keywords: Generational Accounting, Fiscal sustainability, Fiscal policy, Poland, Pension reform
    JEL: H50 H55 H60 H68 J10 H30
    Date: 2010–10
  3. By: Christian Hagist (Research Center for Generational Contracts, University of Freiburg); Bernd Raffelhüschen (Research Center for Generational Contracts, University of Freiburg); Alf Erling Risa; Erling Vårdal
    Abstract: Generational Accounts (GAs) measure the fiscal sustainability of the public sector. We ask whether the contributions from the Government Pension Fund and remaining oil and gas wealth in the ground, together with the pension reform taking effect in 2011, are sufficiently large to secure generational balance in Norway. Our results show that the pension reform has a substantial effect, and contributes as much to generational balance as the total petroleum wealth. Neither increased economic growth per se nor increased fertility contribute to improve the GAs. The structural characteristics of higher employment and lower transfer payments typical for cyclical upturns, improve the GAs substantially. Optimistic assumptions regarding these structural characteristics do not remove the need for further reforms to obtain fiscal sustainability of the Norwegian public sector.
    Keywords: Generational Accounting, Norway, Fiscal Policy, Intergenerational redistribution
    JEL: H50 J10
    Date: 2010–08

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