The authors of this report argue that uncertainty about the benefits and costs of industrial policies, and limited public resources, suggest that governments should prioritise areas where existing structural challenges cannot be addressed solely by markets and other government policies.

Population ageing is expected to result in significantly higher government spending in many OECD countries in the coming decades. This paper sheds light on the macroeconomic consequences of population ageing for government revenue in a framework consistent with the OECD long-term model.