A standard computable general equilibrium model for South Africa

The paper reports on the construction and testing of a Standard International Food Policy Research Institute (IFPRI) computable general equilibrium model for South Africa. A 1998 social accounting matrix (SAM) for South Africa is compiled using national accounts information and recently released sup...

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Autores principales: Thurlow, James, van Seventer, Dirk
Formato: Artículo preliminar
Lenguaje:Inglés
Publicado: International Food Policy Research Institute 2002
Materias:
Acceso en línea:https://hdl.handle.net/10568/158028
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author Thurlow, James
van Seventer, Dirk
author_browse Thurlow, James
van Seventer, Dirk
author_facet Thurlow, James
van Seventer, Dirk
author_sort Thurlow, James
collection Repository of Agricultural Research Outputs (CGSpace)
description The paper reports on the construction and testing of a Standard International Food Policy Research Institute (IFPRI) computable general equilibrium model for South Africa. A 1998 social accounting matrix (SAM) for South Africa is compiled using national accounts information and recently released supply-use tables. By updating to a recent year, and by distinguishing between producers and commodities, this SAM is an improvement on the existing SAM databases for South Africa. Furthermore, this SAM is made consistent with the requirements of IFPRI's standard comparative static computable general equilibrium (CGE) model. This model is then used to simulate the economy-wide impact of a range of hypothetical policy levers, including: increased government spending; the elimination of tariff barriers; and an improvement in total factor productivity. Results indicate that assumptions made regarding the mechanisms of macroeconomic adjustment are important in determining the expected impacts of these policies. Firstly, despite mixed results concerning changes in household income distribution, the impact of expansionary fiscal policy appears to be growth enhancing, with the Keynesian style adjustment mechanism producing the most positive results. Secondly, a complete abolition of import tariffs also appears to generate increases in gross domestic product, with negative and positive consequences for aggregate manufacturing and services respectively. Finally, an increase in total factor productivity is growth enhancing, with the most positive results derived under neoclassical assumptions of the macroeconomic adjustment mechanisms. These simulations are meant to demonstrate the usefulness for economy-wide policy modelling and the paper concludes by highlighting areas of policy analysis that might benefit from more detailed applications with this framework." -- Author's Abstract.
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spelling CGSpace1580282025-11-06T07:15:27Z A standard computable general equilibrium model for South Africa Thurlow, James van Seventer, Dirk computable general equilibrium models macroeconomics income distribution economic policies equilibrium theory income economic analysis social impact assessment The paper reports on the construction and testing of a Standard International Food Policy Research Institute (IFPRI) computable general equilibrium model for South Africa. A 1998 social accounting matrix (SAM) for South Africa is compiled using national accounts information and recently released supply-use tables. By updating to a recent year, and by distinguishing between producers and commodities, this SAM is an improvement on the existing SAM databases for South Africa. Furthermore, this SAM is made consistent with the requirements of IFPRI's standard comparative static computable general equilibrium (CGE) model. This model is then used to simulate the economy-wide impact of a range of hypothetical policy levers, including: increased government spending; the elimination of tariff barriers; and an improvement in total factor productivity. Results indicate that assumptions made regarding the mechanisms of macroeconomic adjustment are important in determining the expected impacts of these policies. Firstly, despite mixed results concerning changes in household income distribution, the impact of expansionary fiscal policy appears to be growth enhancing, with the Keynesian style adjustment mechanism producing the most positive results. Secondly, a complete abolition of import tariffs also appears to generate increases in gross domestic product, with negative and positive consequences for aggregate manufacturing and services respectively. Finally, an increase in total factor productivity is growth enhancing, with the most positive results derived under neoclassical assumptions of the macroeconomic adjustment mechanisms. These simulations are meant to demonstrate the usefulness for economy-wide policy modelling and the paper concludes by highlighting areas of policy analysis that might benefit from more detailed applications with this framework." -- Author's Abstract. 2002 2024-10-24T12:53:15Z 2024-10-24T12:53:15Z Working Paper https://hdl.handle.net/10568/158028 en Open Access application/pdf International Food Policy Research Institute Thurlow, James; van Seventer, Dirk Ernst. 2002. A standard computable general equilibrium model for South Africa. TMD Discussion Paper 100. https://hdl.handle.net/10568/158028
spellingShingle computable general equilibrium models
macroeconomics
income distribution
economic policies
equilibrium theory
income
economic analysis
social impact assessment
Thurlow, James
van Seventer, Dirk
A standard computable general equilibrium model for South Africa
title A standard computable general equilibrium model for South Africa
title_full A standard computable general equilibrium model for South Africa
title_fullStr A standard computable general equilibrium model for South Africa
title_full_unstemmed A standard computable general equilibrium model for South Africa
title_short A standard computable general equilibrium model for South Africa
title_sort standard computable general equilibrium model for south africa
topic computable general equilibrium models
macroeconomics
income distribution
economic policies
equilibrium theory
income
economic analysis
social impact assessment
url https://hdl.handle.net/10568/158028
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