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Fiscal regime changes and the sustainability of fiscal imbalance in South Africa; a smooth transition error-correction approach

Author

Listed:
  • Niek J. Schoeman
  • Ruthira Naraidoo
  • Samuel S. Jibao
Abstract
In addition to the conventional linear cointegration test, this paper tests the asymmetry relationship between fiscal revenue and expenditure, by making a distinction between the adjustment of positive (budget surplus) and negative (budget deficit) deviations from equilibrium. The analysis uses quarterly data for South Africa. The paper reveals that government authorities in South Africa are […]

Suggested Citation

  • Niek J. Schoeman & Ruthira Naraidoo & Samuel S. Jibao, 2011. "Fiscal regime changes and the sustainability of fiscal imbalance in South Africa; a smooth transition error-correction approach," Working Papers 228, Economic Research Southern Africa.
    • Handle: RePEc:rza:wpaper:228
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    References listed on IDEAS

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    Cited by:

    1. Dauda Gbolagade Adebisi & Gbadebo Salako, 2020. "Fiscal policy sustainability in Nigeria: ARDL bounds testing technique," Asian Journal of Empirical Research, Asian Economic and Social Society, vol. 10(3), pages 74-80, March.
    2. A. Phiri, 2019. "Asymmetries in the revenue–expenditure nexus: new evidence from South Africa," Empirical Economics, Springer, vol. 56(5), pages 1515-1547, May.
    3. Ruthira Naraidoo & Leroi Raputsoane, 2015. "Debt Sustainability and Financial Crises in South Africa," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 51(1), pages 224-233, January.
    4. Owolabi A. Usman & Dauda Gbolagade Adebisi, 2017. "A Structural Break Analysis of Fiscal Deficit Process in Nigeria," The Review of Black Political Economy, Springer;National Economic Association, vol. 44(3), pages 341-352, December.
    5. Kavase, Kambale & Phiri, Andrew, 2018. "Are fiscal budgets sustainable in South Africa? Evidence from provincial level data," Business and Economic Horizons (BEH), Prague Development Center (PRADEC), vol. 14(2), February.
    6. Olusola Oyeleke & Monica Orisadare, 2018. "Relative Importance of Public Debts and Money Growth on Inflation in Nigeria," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 10(7), pages 1-99, July.
    7. William Irungu Nganga & Julien Chevallier & Simon Wagura Ndiritu, 2018. "Regime changes and fiscal sustainability in Kenya with comparative nonlinear Granger causalities across East-African countries," Working Papers halshs-01941226, HAL.

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    More about this item

    JEL classification:

    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
    • H62 - Public Economics - - National Budget, Deficit, and Debt - - - Deficit; Surplus

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