2019, Volume 72 - Issue 2
RSS feed citation: At RePEc
Publication date: 02 May 2019
THE FELDSTEIN-HORIOKA PUZZLE AND THE GLOBAL FINANCIAL CRISIS: EVIDENCE FROM SOUTH AFRICA USING ASYMMETRIC COINTEGRATION ANALYSISRead the article
THE CAUSAL IMPACT OF STOCK MARKET DEVELOPMENT ON ECONOMIC DEVELOPMENT IN THE UAE: AN ASYMMETRIC APPROACHRead the article
THE IMPACT OF THE DIVIDEND TAX IN SOUTH AFRICA: A DYNAMIC CGE MODEL APPROACHRead the article
MODELING THE VOLATILITY OF EXCHANGE RATE CURRENCY USING GARCH MODELRead the article
AN EMPIRICAL ANALYSIS FOR THE US OF THE EFFECTS OF GOVERNMENT BUDGET DEFICITS ON THE EX ANTE REAL INTEREST RATE YIELDS ON THIRTY-YEAR AND TWENTY-YEAR TREASURY BONDSRead the article
Lumengo BONGA-BONGA, Department of Economics and Econometrics, University of Johannesburg, South Africa
Jean Luc ERERO, University of Johannesburg, South Africa
This paper analyses the economy-wide impact of the dividend tax (DT) on the South African economy, which was increased from 10% to 15% by the government in 2012. The analysis was conducted using a dynamic computable general equilibrium (CGE) model of South Africa, which captured the observed structure of South Africa’s economy. The parameters of the CGE equations were calibrated to observed data from a social accounting matrix (SAM) for 2010. The simulation results show that the policy impact of increasing the DT has a positive effect on the reported macro-economic variables at the outset of this policy and in the near future. For example, GDP is expected to increase by 0.059% and 0.601% in 2013 and 2019 respectively. Moreover, the simulation results show that the substitution effect dominate the income effect of the taxation of dividend for high skill labours in South Africa.
D33, D58, H25
Dividend Tax, Secondary Tax on Companies, CGE Model, South Africa
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