SOCIAL-SECURITY AND INTERGENERATIONAL REDISTRIBUTION - A GENERATIONALACCOUNTING PERSPECTIVE

This paper is concerned with the analysis of intergenerational redistr ibution in a pay-as-you-go financed social security scheme. Instead of annual fiscal indicators, we apply generational accounts to calculate the intertemporal effects arising from a projected aging process. As a case study, the institutional settings and the parameterization of o ur model refer to the conditions found in Germany in 1989. Additionall y, the intergenerational impacts of the German 1992 Pension Reform Act are taken into account. Our findings suggest that the major reform me asures affect the distribution of the demographic burden between futur e and presently living generations. However, the burden is shifted in favor of the generations currently alive, thereby contradicting the ex plicit political intentions and aggravating the situation for future g enerations.