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Who would eat more with a Food Voucher Programme in South Africa?

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Author Info
Jan van Heerden () (Department of Economics, University of Pretoria)

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Abstract

A Computable General Equilibrium model is used to find the effects of a food voucher scheme on the economy in South Africa. If firms consider the issuing of vouchers as increased remuneration, they will hire fewer labourers. The higher labour cost increases the total cost of production and lowers supply. Real Gross Domestic Product decreases and the economy becomes worse off. However, depending on the size of the government's involvement in such a scheme as well as the tax policies that are used to fund it, a food voucher scheme could benefit the poor, and improve the distribution of wealth in the country.

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Publisher Info
Paper provided by University of Pretoria, Department of Economics in its series Working Papers with number 200837.

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Length: 11 pages
Date of creation: Dec 2008
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Handle: RePEc:pre:wpaper:200837

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  1. W. Jill Harrison & K.R. Pearson, 1994. "Computing Solutions for Large General Equilibrium Models Using GEMPACK," Centre of Policy Studies/IMPACT Centre Working Papers ip-64, Monash University, Centre of Policy Studies/IMPACT Centre. [Downloadable!]
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  2. Klasen, Stephan, 2000. "Measuring Poverty and Deprivation in South Africa," Review of Income and Wealth, Blackwell Publishing, vol. 46(1), pages 33-58, March.
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This page was last updated on 2009-12-3.

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