Social accounting matrice and computable general equilibrium modelling in South Africa with reference to the financial sector
type: CreativeWork
description: A significant challenge facing South African economists is the formulation of appropriate policies to redress the unequal distribution of income and wealth. In many other developing countries, a similar challenge has led to the use of Social Accounting Matrices (SAMs) and Computable General Equilibrium (CGE) models to give quantitative support in the formulation of income redistribution policies. A SAM can be defined as a numerical representation of the economic cycle with emphasis on income distribution. A CGE model can be defined as an economy-wide model that includes the interaction between demand, income and production structure, and where all prices are adjusted until decisions made in production are consistent with decisions made in demand. SAMs and CGE models are particularly well suited for analyses of issues such as income redistribution, since they impart a general equilibrium approach to analyses, as opposed to the traditional partial equilibrium approach. A SAM and CGE culture is lacking, however, in South Africa. This is implied by the fact that almost 35 developing countries already had SAMs before South Africa did, that the most recent South African SAMs, for the year 1988, are "preliminary" and that applications of the SAMs are limited. One of the reasons noted for the limited use of the South African SAMs is their omission of the financial sector. Since South Africa is characterised by a "first world" economy alongside a "third world" economy, the interactions between the developed financial sector and the rest of the economy may be complex. Because these interactions could affect income redistribution policies they should be taken into account, preferably through a general equilibrium framework. The primary objective of this study is to contribute towards a suitable framework for analysing income redistribution and growth in South Africa by extending the present South African SAMs to include the financial sector. The secondary objective of this stu…
abstract: A significant challenge facing South African economists is the formulation of appropriate policies to redress the unequal distribution of income and wealth. In many other developing countries, a similar challenge has led to the use of Social Accounting Matrices (SAMs) and Computable General Equilibrium (CGE) models to give quantitative support in the formulation of income redistribution policies. A SAM can be defined as a numerical representation of the economic cycle with emphasis on income distribution. A CGE model can be defined as an economy-wide model that includes the interaction between demand, income and production structure, and where all prices are adjusted until decisions made in production are consistent with decisions made in demand. SAMs and CGE models are particularly well suited for analyses of issues such as income redistribution, since they impart a general equilibrium approach to analyses, as opposed to the traditional partial equilibrium approach. A SAM and CGE culture is lacking, however, in South Africa. This is implied by the fact that almost 35 developing countries already had SAMs before South Africa did, that the most recent South African SAMs, for the year 1988, are "preliminary" and that applications of the SAMs are limited. One of the reasons noted for the limited use of the South African SAMs is their omission of the financial sector. Since South Africa is characterised by a "first world" economy alongside a "third world" economy, the interactions between the developed financial sector and the rest of the economy may be complex. Because these interactions could affect income redistribution policies they should be taken into account, preferably through a general equilibrium framework. The primary objective of this study is to contribute towards a suitable framework for analysing income redistribution and growth in South Africa by extending the present South African SAMs to include the financial sector. The secondary objective of this stu…
author: Naudé, Willem Adriaan
language: en
date published: 1993
date modified: 2026-07-24T03:33:42Z
provider: North-West University (South Africa)
publisher: Networked Digital Library of Theses and Dissertations
type: WebPage
source organization: North-West University (South Africa)

PropertyValue
property ID: Handle
value: http://hdl.handle.net/10394/41434