Helvi Kinnunen and Pasi Kuoppamäki examine the sustainability of public finances in Finland and the four main euro area countries. The analytical framework is based on intertemporal budget dynamics. The paper shows that, in spite of the increase in age-related expenditure, the policies implicit...

The impact of population ageing on public expenditure development in Finland is analysed by Kinnunen and Tuovinen. As in other countries, ageing will lead to an increase in expenditure on pensions and other welfare services. Other than the increase in spending due to the expected demographic...