1---
 2meta: 
 3  date: false
 4  reading_time: false
 5title: "Intergenerational Equity"
 6date: 2023-10-05
 7description: "A concept of fair treatment of different generations, with applications in fiscal policy, sustainability, and environmental issues."
 8tags: ["Intergenerational Equity", "Fiscal Policy", "Sustainability", "Environmental Economics"]
 9---
10
11## Background
12
13Intergenerational equity refers to fairness or justice between different generations. It seeks to ensure that the actions and policies of the current generation do not compromise the well-being and opportunities available to future generations.
14
15## Historical Context
16
17Concerns about intergenerational equity have arisen prominently in discussions about sustainable development, long-term environmental problems like climate change, and the economic impacts of public debt. Economists, environmentalists, and policymakers have debated how to balance the needs of the present with those of the future.
18
19## Definitions and Concepts
20
21Intergenerational equity encompasses concepts such as:
22- Fair allocation of resources and opportunities
23- Sustainable development practices
24- Equitable distribution of economic burdens, like debt and taxation
25
26## Major Analytical Frameworks
27
28### Classical Economics
29
30Classical economists like Adam Smith and David Ricardo mainly focused on resource allocation and economic growth without explicit emphasis on intergenerational impacts.
31
32### Neoclassical Economics
33
34Neoclassical economics introduced the theories of optimal savings and investments, emphasizing how current economic actions can influence future living standards.
35
36### Keynesian Economics
37
38John Maynard Keynes underscored the role of government policy in managing economic cycles. Discussions around intergenerational equity see fiscal policies—especially public debt—being contextualized in terms of their long-term impacts.
39
40### Marxian Economics
41
42Marxian economics critiques how capitalist systems may inherently foster inequalities, including those across generations. Distribution of wealth and resources over time is a key concern.
43
44### Institutional Economics
45
46Institutional economists study how legal, economic, and political institutions affect economic outcomes between generations. Policy impacts on long-term societal stability and well-being are core elements.
47
48### Behavioral Economics
49
50Behavioral economics examines how individual and collective decision-making impacts resource allocation over time—crucial for understanding how today's actions affect future generations.
51
52### Post-Keynesian Economics
53
54Post-Keynesian approaches focus on income distribution, economic growth, and the importance of government intervention to ensure economic stability and equity, including intergenerational aspects.
55
56### Austrian Economics
57
58Austrian economists prioritize the role of individual choice and market mechanisms. They examine intergenerational equity through lenses of opportunity cost, capital structure, and entrepreneurship.
59
60### Development Economics
61
62Development economics emphasizes the importance of sustainable development that balances the needs of current and future populations, addressing issues like long-term resource management and demographic changes.
63
64### Monetarism
65
66Monetarism focuses on the control of money supply and inflation. Its relevance to intergenerational equity arises in the context of how macroeconomic policies impact future economic stability.
67
68## Comparative Analysis
69
70Different economic theories provide varied perspectives on how policies and actions impact intergenerational fairness. For example, Keynesian policies might favor immediate economic stability even at future costs, whereas neoclassical or development economics might emphasize long-term sustainable growth.
71
72## Case Studies
73
741. Climate Change Policies
752. Debt and Public Spending in Post-World War II Europe
763. Sustainable Development Policies in Scandinavian Countries
77
78## Suggested Books for Further Studies
79
801. "Handbook of Sustainable Development" by Giles Atkinson, Simon Dietz, and Eric Neumayer
812. "The Cost of Climate Change: Risks, Impacts and Economics for Utah" by Frank Ackerman and Elizabeth Stanton
823. "Paying the Piper: Productivity, Incentives, and Financing in U.S. Higher Education" by Michael S. McPherson and Morton Owen Schapiro
83
84## Related Terms with Definitions
85
86- **Sustainability**: Meeting the needs of the present without compromising the ability of future generations to meet their own needs.
87- **Fiscal Policy**: Government adjustments in spending levels and tax rates to influence a nation's economy.
88- **Public Debt**: The total amount of money that a country's government has borrowed, by various means.
89- **Sustainable Development**: Development that meets the needs of the present without compromising the ability of future generations to meet their own needs.