Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/22724
Authors: 
Seitz, Helmut
Freigang, Dirk
Kempkes, Gerhard
Year of Publication: 
2005
Series/Report no.: 
Dresden discussion paper in economics 07/05
Abstract: 
The paper examines the effects of demographic change on federal, state and local government expenditures in Germany. Public spending is decomposed into almost 30 categories (functions) and simple estimates of age cost profiles are derived. Using population forecasts and assuming timeinvariant age cost profiles we estimate the effects of the ageing of the Germany society on the level and structure of expenditures at the three layers of governments. Our results show that subnational governments - state and local governments - can expect demographic savings whereas the federal government will live to see a worsening of its fiscal stance. Thus one should expect that significant vertical expenditure imbalances will arise that - if institutional settings are left unchanged - will ask for an adjustment of revenue distribution within the federation.
Subjects: 
Fiscal Federalism
Demographic Change
Vertical Fiscal Imbalances
JEL: 
J1
H7
H1
Document Type: 
Working Paper

Files in This Item:
File
Size
243.88 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.