Intergenerational equity, in the sociological and psychological context, is the concept or idea of fairness or justice in relationships between children, youth, adults and seniors, particularly in terms of treatment and interactions. It has been studied in environmental and sociological settings.[1] In the context of institutional investment management, intergenerational equity is the principle that an endowed institution's spending rate must not exceed its after-inflation rate of compound return, so that investment gains are spent equally on current and future constituents of the endowed assets. This concept was originally set out in 1974 by economistJames Tobin, who wrote that, "The trustees of endowed institutions are the guardians of the future against the claims of the present. Their task in managing the endowment is to preserve equity among generations."[2]
Conversations about intergenerational equity are also relevant to social justice arenas as well, where issues such as health care[7] are equal in importance to youth rights and youth voice are pressing and urgent. There is a strong interest within the legal community towards the application of intergenerational equity in law.[8]
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References
^ Foot, D. & Venne, R. (2005) "Awakening to the Intergenerational Equity Debate in Canada." Journal of Canadian Studies.
^ Williams, A. (1997) "Intergenerational equity: An exploration of the 'fair innings' argument." Health Economics. 6(2):117-32.
^ O'Brein, M. (n.d.) Not, 'Is it Irreparable?' But, 'Is it Unnecessary?' Thoughts on a Practical Limit for Intergenerational Equity Suits. Eugene, OR: Constitutional Law Foundation.
