scholarly journals A Partial General Equilibrium Analysis Of Fiscal Policy Injection On Poverty And Inequality In South Africa 

2020 ◽  
Author(s):  
Kambale Kavese ◽  
Andrew Phiri

Abstract This study employs a partial general equilibrium approach calibrated on the Social Accounting Matrix (SAM) and a contemporaneous dynamic computable general equilibrium (CGE) model to assess the effect of expansionary fiscal policy on economic growth, income inequality, poverty, employment and inequality reduction in South Africa. The simulation results reveal that expansionary fiscal policy i) benefits rich ‘white’ households the most and poor ‘coloured’ households the least ii) improves adult employment more than youth employment iii) improves employment in urban areas as proposed to employment in rural areas iv) has a very small effect on improving economic growth and reducing the Gini coefficient v) benefits ‘well-off’ households more than it does ‘poor’ households vi) promotes ‘low-skilled’ employment more than it does for ‘high-skilled’ labourers. Associated policy implications based on our findings are also discussed.

2004 ◽  
Vol 7 (3) ◽  
pp. 521-531 ◽  
Author(s):  
M Kearney ◽  
J H Van Heerden

Zero-rating food is considered to alleviate poverty of poor households who spend the largest proportion of their income on food.  However, this will result in a loss of revenue for government.  A Computable General Equilibrium (CGE) model is used to analyze the combined effects on zero-rating food and using alternative revenue sources to compensate for the loss in revenue.  To prohibit excessively high increases in the statutory VAT rates of business and financial services, increasing direct taxes or increasing VAT to 16 per cent, is investigated.  Increasing direct taxes is the most successful option when creating a more progressive tax structure, and still generating a positive impact on GDP.  The results indicate that zero-rating food combined with a proportional percentage increase in direct taxes can improve the welfare of poor households.  


2011 ◽  
Vol 347-353 ◽  
pp. 1093-1097
Author(s):  
Ai Jun Li ◽  
Zheng Li

This study analyzes the effects of technological progress for energy intensity and energy use related carbon dioxide emissions during urbanization in China by a dynamic computable general equilibrium model. The parameters about technological progress and urbanization are all exogenously given. The impacts of technological progress on economic growth, energy intensity and carbon dioxide emissions during period from 2002 to 2030 are examined. Simulation results show that gradually pushing energy efficiency related technologies through appropriate policy incentives is the key to realize low-carbonized development while promoting economic growth in China.


2007 ◽  
Vol 35 (69_suppl) ◽  
pp. 77-84 ◽  
Author(s):  
Mark A. Collinson ◽  
Stephen M. Tollman ◽  
Kathleen Kahn

Background: World population growth will be increasingly concentrated in the urban areas of the developing world; however, some scholars caution against the oversimplification of African urbanization noting that there may be ``counterurbanization'' and a prevailing pattern of circular rural—urban migration. The aim of the paper is to examine the ongoing urban transition in South Africa in the post-apartheid period, and to consider the health and social policy implications of prevailing migration patterns. Methods: Two data sets were analysed, namely the South African national census of 2001 and the Agincourt health and demographic surveillance system. A settlement-type transition matrix was constructed on the national data to show how patterns of settlement have changed in a five-year period. Using the sub-district data, permanent and temporary migration was characterized, providing migration rates by age and sex, and showing the distribution of origins and destinations. Findings: The comparison of national and sub-district data highlight the following features: urban population growth, particularly in metropolitan areas, resulting from permanent and temporary migration; prevailing patterns of temporary, circular migration, and a changing gender balance in this form of migration; stepwise urbanization; and return migration from urban to rural areas. Conclusions: Policy concerns include: rural poverty exacerbated by labour migration; explosive conditions for the transmission of HIV; labour migrants returning to die in rural areas; and the challenges for health information created by chronically ill migrants returning to rural areas to convalesce. Lastly, suggestions are made on how to address the dearth of relevant population information for policy-making in the fields of migration, settlement change and health.


2020 ◽  
Vol 14 (2) ◽  
pp. 195-214
Author(s):  
Muhammad Rizal Taufikurahman ◽  
Ahmad Heri Firdaus

Abstrak Kehadiran ekonomi digital sebagai bagian dari revolusi industri 4.0 yang telah membuka peluang baru dalam bidang perdagangan dan menjembatani kepentingan produsen, konsumen, dan pasar tanpa dibatasi ruang dan waktu. Tujuan penelitian ini adalah menganalisis dampak pemanfaatan teknologi digital pada sektor perdagangan terhadap produktivitasnya, penyerapan tenaga kerja dan pertumbuhan ekonomi. Metode analisis yang digunakan adalah metode analisis model Computable General Equilibrium (CGE) dinamik. Hasil analisis menunjukkan digitalisasi di sektor perdagangan meningkatkan jumlah outputnya sebagai produktivitas jangka pendek dan panjang. Adapun dampak terhadap penyerapan tenaga kerja di perkotaan dan pedesaan menurunkan jenis pekerjaan tertentu pada periode analisis terutama tenaga kerja terampil rendah. Selanjutnya dampak terhadap GDP riil meningkat pada periode analisis. Kebijakan yang direkomendasikan adalah perlu perbaikan akurasi dan validitas database produk-produk yang kompetitif, strategi antisipatif untuk tenaga kerja yang terdistrupsi, pelayanan perizinan akses semakin mudah, optimalisasi aplikasi teknologi digital dalam tata kelola perdagangan, dan perbaikan sarana prasarana informasi dan teknologi. Kata Kunci: Teknologi Digital, Produktivitas, Tenaga Kerja, Pertumbuhan Ekonomi   Abstract The presence of a digital economy as part of the industrial revolution 4.0 has opened up new opportunities in trade and bridged the interests of producers, consumers, and markets without being constrained by time and space. The study aims to analyze the impact of digital technology utilization on the trade sector on its productivity, labor, and economic growth. The analysis method used is the Dynamic Computable General Equilibrium (CGE) model. The analysis results show that digitalization in the trade sector increases output as productivity in the short and long term. The impact on labor in urban and rural areas reduces certain types of work in the analysis period, especially low skilled labor. Furthermore, during the analysis period, the impact on real GDP increases. The recommended policy is to improve the accuracy and validity of competitive products' database, anticipatory strategies for labor that have disrupted, easier access licensing services, optimization of digital technology applications in trade governance, and improvement of information and technology infrastructure. Keywords: Digital Technology, Productivity, Labor, Economic Growth JEL Classification: F12, F13, F15


2017 ◽  
Vol 9 (4) ◽  
pp. 79
Author(s):  
El Moussaoui Mohamed ◽  
Mohamed Karim

This article examines the effects of the fiscal policy on income and the consumption of the poor households in urban and rural areas. The evaluation of this impact is carried out by the use of a real and static Computable General Equilibrium Model (CGEM) in open economy and with government. The Social Accounting Matrix of the year 2013 is used for the supposed simulations.The results obtained show clearly that 50% direct tax reduction in income for the urban poor households and 100% for the rural ones make it possible to increase significantly the disposable income of these households as well as improving their consumption. On the other hand, the other policies such as exempting the agricultural and food commodities from the indirect tax, combined with 20% increase in this tax for the industrial products and the private services, or the exemption of the agricultural and food products from the customs duties, do not have a positive effect on the income and the consumption of the poor households.


Author(s):  
Manuel Kallweit

SummaryThe paper presents a numerical general equilibrium model in which agents decide about their retirement age. In this context policy reforms like an increase of the normal retirement age, higher discounts for early retirement or the introduction of flat or minimum pensions are simulated. While future generations benefit from the first two reforms, they suffer from the latter. There are three central findings: First, higher discounts have a stronger effect on the retirement decision than an increase in normal retirement age. Second, the timing of retirement is significantly affected by an introduction of flat pensions. Third, models with an explicit retirement decision can lead to different policy implications compared to models in which retirement age is exogenous.


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