FISCAL REFORM IN SWEDEN - WHAT GENERATIONAL ACCOUNTING TELLS US

Generational accounts answer the simple question of how much future ge nerations will have to pay in net taxes as compared to today's generat ions. This paper briefly reviews the concept of generational accountin g and provides estimates for Sweden, where public finances deteriorate d significantly after 1990. The results suggest that the measures adop ted since 1994 should improve dramatically the relative position of fu ture generations, who may nevertheless be expected to face large net t ax bills. (JEL H62).