Generational Accounting in Norway: Is the Nation Overconsuming its Petroleum Wealth?

This paper uses generational accounting to assess Norway’s fiscal position. Generational accounting measures the remaining lifetime net tax burdens facing different living generations. It can also be used to compute the percentage difference between the average net tax burden facing future generations and that facing current newborns under existing fiscal policies. Although the Norwegian government imposes sizable burdens on current generations, it also consumes a large share of total national output. Our calculations indicate that despite the government’s positive net wealth, current policies imply net tax burdens on future Norwegians that are about twice as large as those facing current young generations.