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THE USE OF A MARSHALLIAN MACROECONOMIC MODEL FOR POLICY EVALUATION: CASE OF SOUTH AFRICA

Published online by Cambridge University Press:  23 March 2012

Jacques Kibambe Ngoie  and
Arnold Zellner
Jacques Kibambe Ngoie*
Affiliation:
University of Chicago and University of Pretoria
Arnold Zellner
Affiliation:
University of Chicago
*
Address correspondence to: Jacques Kibambe Ngoie, Department of Economics, University of Pretoria, Lynwood Rd, Pretoria 0002, South Africa; e-mail: [email protected].
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Abstract

Using a disaggregated Marshallian macroeconomic model, this paper investigates how the adoption of a set of “free market reforms” may affect the economic growth rate of South Africa. Our findings suggest that the institution of the proposed policy reforms would yield substantial growth in aggregate annual real GDP. The resulting annual GDP growth rate could range from 5.3% to 9.8%, depending on which variant of the reform policies was implemented.

Keywords

Marshallian Macroeconomic ModelDisaggregationTransfer FunctionsMacroeconomic Policy Analysis
Type
Articles
Information
Macroeconomic Dynamics , Volume 16 , Issue 3 , June 2012 , pp. 423 - 448
Copyright
Copyright © Cambridge University Press 2012

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