Abstract
This article studies the dynamics of gross national saving, government saving and private saving in response to fiscal shocks, by using the impulse response functions (IRF) obtained from the structural vector autoregressive (SVAR). This article aims to determine the extent to which fiscal policy influences savings in South Africa, and to test whether the Ricardian equivalence proposition holds in South Africa. It concludes that the full Ricardian equivalence does not hold in the short term, and in the long term the response of national saving to fiscal policy shocks is neutral.
| Translated title of the contribution | National saving and fiscal policy in South Africa: An empirical analysis |
|---|---|
| Original language | Undefined/Unknown |
| Pages (from-to) | 211-235 |
| Number of pages | 25 |
| Journal | Acta Academica |
| Volume | 41 |
| Issue number | 1 |
| Publication status | Published - 2009 |
ASJC Scopus subject areas
- General Arts and Humanities
- General Social Sciences
