- Home
- Publications
- Fiscal Policy, Fairness Between Generations And National Saving
Fiscal Policy, Fairness between Generations and National Saving


Downloads
dp338_0-2.pdfRelated Themes
Monetary Theory and PolicyJEL Code
E21, E61, E62, H62, H63
Journal
Oxford Review of Economic Policy
Paper Category Number
338
We assess fiscal policy from the perspective of fairness between generations and the relationship between this and national saving , in the context where the United Kingdom is the lowest-saving of all the OECD economies. Cross-section and pooled data suggest that governments are in a position to influence national saving and we set out a simple overlapping generation model to show the effects of national debt, of pay as you benefit systems, of legacies and movements to land prices as means of effecting transfers between generations. Having shown that governments can influence the distribution of resources between generations we then discuss three notions of fairness between generations, i) that each cohort should pay its own way, ii) that a social planner should reallocate resources between generations to achieve and inter-temporal optimum and iii ) that resources should be reallocated so that generations alive at the same time have similar living standards. In the light of these observations we discuss appropriate responses to a variety of economic shocks and we conclude with implications for policy in the aftermath of the recession.
Related Blog Posts


How can the Chancellor Mitigate the Impact of Various Shocks in Wednesday’s Spring Statement?
Stephen Millard
Adrian Pabst
4 min read


Related Projects
Related News
-640x360.jpg)
Time to scrap current fiscal rules – and focus on more explicit policy evaluation, NIESR research shows
23 Apr 2021
4 min read

NIESR Press Note: Budget 2021: Today’s triumphs won’t solve tomorrow’s problems
03 Mar 2021
5 min read
Related Publications
Agroforestry Programs in the Colombian Amazon: Selection, Treatment and Exposure Effects on Deforestation
06 May 2022
Discussion Papers
Econometric Analysis of the Determinants of Bank Profitability in Three Major African Counties: Kenya, Nigeria and South Africa
30 Mar 2022
Discussion Papers
The Macro-Economic Effects of UK Aid Returning to 0.7% of GNI
16 Mar 2022
Discussion Papers
Related events

2022 Dow Lecture: The Economy and Policy Trade-Off

Autumn Economic Forum

