Estimates of personal sector wealth for South Africa
AbstractWithout information on the market values of the main components of household wealth, it is difficult to understand the behaviour of aggregate consumer spending and of the broad money holdings of households. This paper constructs the first coherent set of aggregate personal sector wealth estimates at market value for South Africa. Our estimates derive from data published by the Reserve Bank on financial flows and various other capital market data, much of it at book value. Our methods rely, where relevant, on accumulating flow of funds data using appropriate benchmarks, and, where necessary, converting book to market values using appropriate asset price indices. The paper plots asset to income ratios for various asset classes, and by relating these to asset price movements and rates of return, throws some light on changes in the composition of personal sector wealth. The most striking changes have been the rise in pension wealth - overtaking housing wealth in the early 1990s, the rise in debt, and the relative decline of liquid assets and housing wealth since the early and mid-1980s, respectively. Areas of current ignorance are highlighted, particularly those concerning foreign assets, the unincorporated business sector and the nature of pension rights.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by University of Oxford, Department of Economics in its series Economics Series Working Papers with number WPS/1999-17.
Date of creation: 01 May 1999
Date of revision:
Other versions of this item:
- John Muellbauer & Janine Aron, 1999. "Estimates of personal sector wealth for South Africa," CSAE Working Paper Series 1999-17, Centre for the Study of African Economies, University of Oxford.
- Aron, Janine & Muellbauer, John, 2004. "Estimates of Personal Sector Wealth for South Africa," CEPR Discussion Papers 4646, C.E.P.R. Discussion Papers.
- E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
- G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- James M. Poterba, 1987.
"Tax Policy and Corporate Saving,"
470, Massachusetts Institute of Technology (MIT), Department of Economics.
- B.W. Smit & B.A. Mocke, 1991. "Capital Flight from South Africa: Magnitude and Causes," South African Journal of Economics, Economic Society of South Africa, vol. 59(2), pages 60-77, 06.
- Bayoumi, Tamim, 1993.
"Financial Deregulation and Household Saving,"
Royal Economic Society, vol. 103(421), pages 1432-43, November.
- Schmidt-Hebbel, K. & Serven, L., 1997. "Saving Across the World: Puzzles and Policies," World Bank - Discussion Papers 354, World Bank.
- Berg, Lennart, 1994. "Household Savings and Debts: The Experience of the Nordic Countries," Oxford Review of Economic Policy, Oxford University Press, vol. 10(2), pages 42-53, Summer.
- Bulow, Jeremy I, 1982. "What Are Corporate Pension Liabilities?," The Quarterly Journal of Economics, MIT Press, vol. 97(3), pages 435-52, August.
- Janine Aron & John Muellbauer, 2000.
"Personal and corporate saving in South Africa,"
CSAE Working Paper Series
2000-21, Centre for the Study of African Economies, University of Oxford.
- Aron, Janine & Muellbauer, John, 2000. "Personal and Corporate Saving in South Africa," CEPR Discussion Papers 2656, C.E.P.R. Discussion Papers.
- Janine Aron & John Muellbauer & John Muellbauer, 2000. "Personal and Corporate Saving in South Africa," Economics Series Working Papers WPS/2000-21, University of Oxford, Department of Economics.
- Aron, Janine & Muellbauer, John & Prinsloo, Johan, 2006. "Estimating the Balance Sheet of the Personal Sector in an Emerging Market Country: South Africa 1975-2003," Working Paper Series RP2006/99, World Institute for Development Economic Research (UNU-WIDER).
- Janine Aron & John Muellbauer, 2000.
"Financial Liberalization, Consumption and Debt in South Africa,"
Economics Series Working Papers
WPS/2000-22, University of Oxford, Department of Economics.
- Janine Aron & John Muellbauer, 2000. "Financial liberalisation, consumption and debt in South Africa," CSAE Working Paper Series 2000-22, Centre for the Study of African Economies, University of Oxford.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Caroline Wise).
If references are entirely missing, you can add them using this form.