Tax Aspects of Policy Towards Aging Populations : Canada and the United States

Author / Creator

Auerbach, Alan J

Available as

Online

Summary

Abstract: This paper uses the Auerbach-Kotlikoff Dynamic Simulation Model to compare. Abstract: the projected demographic transitions in Canada and the United States. The. Abstract: simulation mode...

Abstract: This paper uses the Auerbach-Kotlikoff Dynamic Simulation Model to compare.

Abstract: the projected demographic transitions in Canada and the United States. The.

Abstract: simulation model determines the perfect foresight transition path of an economy.

Abstract: in which individuals live to age 75. The model's preferences are life cycle.

Abstract: augmented to include utility from bequests. In addition to handling changes in.

Abstract: demographics and fiscal policies, the model can be run for closed or open.

Abstract: In comparing Canada with the U.S., we first simulate the U.S. demographic.

Abstract: transition, treating the U.S. as a closed economy. The time path of interest.

Abstract: rates obtained from the U.S. simulations are then used in the Canadian.

Abstract: simulations. In the Canada simulations, Canada is assumed to be an open.

Abstract: economy which takes the U.S. interest rate as given.

Abstract: The simulations indicate that demographics are likely to have significant.

Abstract: effects on rates of saving and taxation in both the U.S. and Canada. However.

Abstract: the more abrupt demographic transition in Canada combined with the projected.

Abstract: maturation of Canadian social security system leads to a more severe predicted.

Abstract: long term decline in Canadian saving rates. Despite the predicted lower saving.

Abstract: rates, capital deepening is likely to occur in both countries, and the.

Abstract: associated increase in real wages is likely to more than offset projected.

Abstract: higher tax rates, leaVing the growth-adjusted welfare of future generations.

Abstract: higher than that of current generations.

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