Performance of Fiscal Accounts in South Africa in a Cross-Country Setting
September 1, 2010
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Summary
This paper analyzes the cyclical fluctuations in South Africa in a cross-country context, and studies the impact of the output gap by controlling for export intensity, the debt burden, asset prices, and banking crises. Results show that South Africa’s revenue performance was outstanding during the mid-2000s, and the recent decline in revenue was one of the least among the emerging and advanced markets. Results on the elasticity of tax revenue show that South Africa’s elasticity is higher during business upturns, indicating good prospects for recovering the revenue lost during the global financial crisis.
Subject: Business cycles, Economic growth, Emerging and frontier financial markets, Financial crises, Financial markets, Global financial crisis of 2008-2009, Output gap, Production, Revenue administration
Keywords: Africa, Business cycles, elasticity of revenue, Emerging and frontier financial markets, financial crisis, Global, Global financial crisis of 2008-2009, heterogenous elasticity coefficient, Output gap, output gap point, output-gap dummy, panel data, revenue elasticity, revenue gap, revenue performance, revenue trend, South Africa, structural balance, WP
Pages:
19
Volume:
2010
DOI:
Issue:
217
Series:
Working Paper No. 2010/217
Stock No:
WPIEA2010217
ISBN:
9781455208821
ISSN:
1018-5941
