On Models of Funding the Lifecycle Deficit

Abstract

The article elaborates on the macro-analysis as related to the aggregated National Transfer Accounts (NTA), the topic originated in the prior publications in Voprosy Statistiki journal (Issues 4 and 11 of 2019), and builds upon the research conducted by HSE National Research University in 2020 as part of Russia’s participation in the global National Transfer Accounts project. The author explored various models of funding the economic life cycle deficit (various support system), adopted by separate groups of economies, through the lens of population savings in these countries. The article was profoundly examined how “excessive” household consumption is supported by public transfers and the correlation between the scale of such transfers and the household sector’s appetite for savings. By taking this research angle, the author aimed to develop deeper understanding of the underlying forces that drive savings into investments within the household sector. The author summarized key parameters of aggregated NTA for Russia in 2017–2019 to produce early quantitative assessments of the deficit funding structure. A closer look into relations between the funding models and incomes saved by population allowed to make cross-country comparisons and map Russia in global environment. The article discussions will be useful to the readers with an interest in demographic studies and socio-economics.