Counting the Oil Money and the Elderly : Norway's Public Sector Balance Sheet /

Based on a permanent income analysis, Gagnon (2018) has prominently suggested that Norway has saved too much, thereby free-riding on the rest of the world for demand. Our public sector balance sheet analysis comes to the opposite conclusion, chiefly because it also accounts for future aging costs. U...

Полное описание

Библиографические подробности
Главный автор: Cabezon, Ezequiel
Другие авторы: Henn, Christian
Формат: Журнал
Язык:English
Опубликовано: Washington, D.C. : International Monetary Fund, 2018.
Серии:IMF Working Papers; Working Paper ; No. 2018/190
Online-ссылка:Full text available on IMF
Описание
Итог:Based on a permanent income analysis, Gagnon (2018) has prominently suggested that Norway has saved too much, thereby free-riding on the rest of the world for demand. Our public sector balance sheet analysis comes to the opposite conclusion, chiefly because it also accounts for future aging costs. Unsurprisingly, we find that Norway's current assets exceed its liabilities by some 340 percent of mainland GDP. But its nonoil fiscal deficits have grown very large (to almost 8 percent of mainland GDP) and aging pressures are only commencing. Therefore, Norway's intertemporal financial net worth (IFNW) is negative, at about -240 percent of mainland GDP. As IFNW represents an intertemporal budget constraint, this implies that Norway's savings are likely insufficient to address aging costs without additional fiscal action.
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Объем:1 online resource (55 pages)
Формат:Mode of access: Internet
ISSN:1018-5941
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