DSGE models for the South African economy
type: CreativeWork
description: Dynamic stochastic modelling is relatively a new exercise in developing countries including South Africa. We use stochastic models to reproduce stylized facts of business cycles in South Africa. The basic neoclassical model and a model with indivisible labour are used to replicate the documented facts from the data. A model with variable capacity utilization and investment specific shocks is also used to reproduce facts about the manufacturing sector in South Africa. The models fair reasonably well in replicating volatilities of certain variables, but investment remains over-volatile in all the models. However, the South African labour market remains the hardest to replicate amidst well documented inflexibility.
abstract: Dynamic stochastic modelling is relatively a new exercise in developing countries including South Africa. We use stochastic models to reproduce stylized facts of business cycles in South Africa. The basic neoclassical model and a model with indivisible labour are used to replicate the documented facts from the data. A model with variable capacity utilization and investment specific shocks is also used to reproduce facts about the manufacturing sector in South Africa. The models fair reasonably well in replicating volatilities of certain variables, but investment remains over-volatile in all the models. However, the South African labour market remains the hardest to replicate amidst well documented inflexibility.
author: Abbas, Ahmed
language: eng
date published: 2010
date modified: 2026-07-22T22:23:06Z
provider: University of Cape Town
publisher: Networked Digital Library of Theses and Dissertations
type: WebPage
source organization: School of Economics

PropertyValue
property ID: Handle
value: http://hdl.handle.net/11427/12738