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Population Research and Policy Review

, Volume 26, Issue 2, pp 185–201 | Cite as

The fiscal burden of rising dependency ratios

  • Joe RuggeriEmail author
  • Yang Zou
Article

Abstract

This paper explores the issue of the fiscal burden of population aging in Canada over the period from 2004 to 2026 by introducing a new methodological tool and using an approach that (a) is comprehensive with respect to government revenues and expenditures, (b) uses a fine disaggregation of government revenues and expenditures, and (c) integrates demographic, economic, and fiscal developments. The results indicate that the concerns about the ability of the existing fiscal system to withstand the pressures of population aging are unfounded. They indicate that, in the absence of an economic collapse, the existing fiscal structure will be able to handle the fiscal pressures of population aging. Instead of letting a nonexistent problem drive the course of fiscal policy in Canada, it would be more profitable to focus on avenues for making the fiscal structure a more effective tool for economic growth and human development.

Keywords

Population aging Fiscal burden Dependency ratios Fiscal dependency 

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Copyright information

© Springer Science+Business Media B.V. 2007

Authors and Affiliations

  1. 1.Policy Studies CentreUniversity of New BrunswickFrederictonCanada

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