This article describes generational accounting (GA) with a focus on what it
brings to the broader literature on generational equity. Our assessment
suggests that the GA model has its limitations but is potentially useful in
the hands of analysts who are familiar with both the strengths and
limitations of the model. It is most useful when the focus is on dealing with
intergenerational equity, but it is much less useful when the focus is on
issues related to class, race, and other forms intragenerational equity. We
conclude that when GA models are used to support calls for retrenchment
of public spending on pensions and other social programs that target the
older population, it makes sense to recognize that the potential benefits
with respect to government debt and deficit reduction and reduced
inequality in net tax burdens across age cohorts may come at the cost of
increased intragenerational inequality for many workers and retirees