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Modelling the impact of automatic fiscal stabilisers on output stabilisation in South Africa

Author

Listed:
  • Jacques Kibambe

    (Department of Economics, University of Pretoria)

  • Niek J. Schoeman

    (Department of Economics, University of Pretoria)

Abstract

This paper investigates ways in which an efficiency model like 'DEA Window analysis' can be utilised, under strictly defined conditions, to assess the level of efficiency of automatic fiscal stabilisers (AFS). The size of AFS is obtained through gaps in both revenue and expenditures variables such as tax revenue (current tax on income and wealth), social grants/benefits, and compensation of employees. The results obtained support evidence of AFS action between 1991 and 2005 and explain distinct cointegrating vectors that exist between the obtained efficiency scores and some selected variables, such as a corruption perception index (CPI), a conversion factor (exports), and the level of openness in the economy.

Suggested Citation

  • Jacques Kibambe & Niek J. Schoeman, 2009. "Modelling the impact of automatic fiscal stabilisers on output stabilisation in South Africa," Working Papers 200930, University of Pretoria, Department of Economics.
    • Handle: RePEc:pre:wpaper:200930
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    References listed on IDEAS

    as
    1. Ray Barrell & Ian Hurst & Álvaro Pina, 2002. "Fiscal Targets, Automatic Stabilisers and their Effects on Output," Working Papers Department of Economics 2002/05, ISEG - Lisbon School of Economics and Management, Department of Economics, Universidade de Lisboa.
    2. Barro, Robert J, 1979. "On the Determination of the Public Debt," Journal of Political Economy, University of Chicago Press, vol. 87(5), pages 940-971, October.
    3. Jacques Ngoie Kibambe & Steven F. Koch, 2005. "DEA Applied to a Gauteng Sample of South African Public Hospitals," Working Papers 200512, University of Pretoria, Department of Economics.
    4. Charnes, A. & Cooper, W. W. & Rhodes, E., 1978. "Measuring the efficiency of decision making units," European Journal of Operational Research, Elsevier, vol. 2(6), pages 429-444, November.
    5. Tendai Gwatidzo & Witness Simbanegavi, 2021. "Building a competitive and dynamic green industrial sector in South Africa after COVID-19," Working Papers 28, Economic Research Southern Africa.
    6. W. Cooper & Shanling Li & L. Seiford & Kaoru Tone & R. Thrall & J. Zhu, 2001. "Sensitivity and Stability Analysis in DEA: Some Recent Developments," Journal of Productivity Analysis, Springer, vol. 15(3), pages 217-246, May.
    7. Stan du Plessis & Willem Boshoff, 2007. "A fiscal rule to produce counter-cyclical fiscal policy in South Africa," Working Papers 13/2007, Stellenbosch University, Department of Economics.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    South Africa; Automatic Fiscal Stabilisers; Data Envelopment Analysis; Efficiency scores.;
    All these keywords.

    JEL classification:

    • C10 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - General
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies

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