A Numerical Study on Assessing Sustainable Development with Future Genuine Savings Simulation

Abstract

This paper presents a numerical examination of sustainability from the perspective of "Genuine Savings," using a data set provided by the World Bank. Unlike previously-used criteria of sustainability that focuses on observed paths of genuine savings rates, we consider future sustainability by simulating future paths of genuine savings. This analysis shows that some countries that had been classified as being sustainable by previous studies, using observed paths, are, in fact, not sustainable from the perspective of future sustainability. We provide information on capital components which should be targeted by policymakers in order to maintain future sustainability.