Generational Accounting in Turkey

Date

2015-01-01

Author

Derin Güre, Pınar

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Generational Accounting, developed by Auerbach, Gokhale and Kotlikoff (1991), is an alternative and dynamic method employed in measuring the impact of existing fiscal policies on current and future generations. In contrast to the traditional and static measures of fiscal sustainability, the Generational Accounting method reveals the intergenerational distribution of tax burden and helps identify the policies that can alleviate the generational imbalance. This paper constructs and presents the first set of generational accounts for Turkey in an attempt to measure the generational gap and compare the Turkish intergenerational fiscal outlook with a number of developed and developing countries. Findings in the paper suggest that a 24.3% fiscal imbalance will be to the detriment of future generations in Turkey. Several hypothetical policy experiments have been implemented in the paper to correct the generational balance in Turkey.

Subject Keywords

Generational accounting, Fiscal sustainability, Turkish Fiscal System

URI

https://hdl.handle.net/11511/40078

Journal

Boğaziçi Journal

DOI

https://doi.org/10.21773/boun.29.1.1

Collections

Department of Economics, Article

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Citation Formats

P. Derin Güre, “Generational Accounting in Turkey,” Boğaziçi Journal, pp. 1–26, 2015, Accessed: 00, 2020. [Online]. Available: https://hdl.handle.net/11511/40078.