The Fiscal Burden of Korean Reunification: A Generational Accounting Approach

Alan Auerbach, Young Jun Chun and Ilho Yoo

FinanzArchiv: Public Finance Analysis, 2005, vol. 61, issue 1, 62-97

Abstract: This paper uses generational accounting to assess the fiscal impacts of Korean reunification. Our findings suggest that early reunification will result in a large increase in the fiscal burden for most current and future generations of South Koreans. The Korean reunification's fiscal impact appears much larger than that of German reunification, due to a wider gap in productivity between the two Koreas and North Korea's much larger share of the unified country's population. The projected large-scale fiscal burden on South Korea is attributable primarily to the rapid increase in social welfare expenditure for North Korean residents, rather than to the direct reconstruction cost of the North Korean economic system after the disintegration of its old economic regime.

Keywords: generational accounts; reunification cost; social welfare expenditure (search for similar items in EconPapers)
JEL-codes: H22 H55 H60 (search for similar items in EconPapers)
Date: 2005
References: Add references at CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
https://www.mohrsiebeck.com/en/article/the-fiscal- ... 16280015221053722523
Fulltext access is included for subscribers to the printed version.

Related works:
Working Paper: The Fiscal Burden of Korean Reunification: A Generational Accounting Approach (2004)
Working Paper: The Fiscal Burden of Korean Reunification: A Generational Accounting Approach (2004)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:mhr:finarc:urn:sici:0015-2218(200503)61:1_62:tfbokr_2.0.tx_2-t

Ordering information: This journal article can be ordered from
Mohr Siebeck GmbH & Co. KG, P.O.Box 2040, 72010 Tübingen, Germany
order@mohrsiebeck.com

Access Statistics for this article

FinanzArchiv: Public Finance Analysis is currently edited by Alfons Weichenrieder, Ronnie Schöb and Jean-François Tremblay

More articles in FinanzArchiv: Public Finance Analysis from Mohr Siebeck, Tübingen
Bibliographic data for series maintained by Thomas Wolpert (wolpert@mohrsiebeck.com).