Jan van Heerden () (Department of Economics, University of Pretoria) James Blignaut () (Department of Economics, University of Pretoria) Andre Jordaan () (Department of Economics, University of Pretoria)
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The paper uses a static Computable General Equilibrium (CGE) model of South Africa and simulates various shocks to the price of electricity. We attempt di¤erent closures to the model and compare their respective e¤ects on the Consumer Price Index. In a CGE model, this is measuring the real appreciation of the exchange rate, or international trade competitiveness. In general, we conclude that electricity prices per se does not signi?cantly in?uence the real exchange rate, regardless of which closure is used.
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Paper provided by University of Pretoria, Department of Economics in its series Working Papers with number
200836.
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Find related papers by JEL classification: D5 - Microeconomics - - General Equilibrium and Disequilibrium E3 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles H2 - Public Economics - - Taxation, Subsidies, and Revenue
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