Journal Article

Results for GA and NTA: the sustainability of the welfare state in Spain

Patxot, C., Renteria, E., Sánchez Romero, M., Souto, G.
Moneda y Crédito, 7–51 (2011)


The goal of this paper is twofold. First, the first complete estimates for National Transfers Accounts (NTA) applied to Spain are presented. The excess of total consumption on labour income -the life cycle deficit- and the way it is financed through age reallocation via market, public, or private transfers, is obtained. These estimates are then used to measure the relevance of the first demographic dividend. Second, the similarities between this technique and Generational Accounting (GA) are discussed, highlighting the way they could complement each other to give a more complete picture of the effects of ageing on the economy. In particular, the way GA sustainability indicators might be extended to include not only public transfers but also other age reallocations ocurred through family and market is shown.
Keywords: Spain, debt, economic demography, economic indicators
The Max Planck Institute for Demographic Research (MPIDR) in Rostock is one of the leading demographic research centers in the world. It's part of the Max Planck Society, the internationally renowned German research society.