Stock-and-flow-consistent macroeconomic model for South Africa

Abstract

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Fiscal multipliers in South Africa: The importance of financial sector dynamics

“…There are small changes to the model described in Makrelov et al (2018) to reflect the conditions immediately after the 2008 crisis. We increase the responsiveness of price expectations in Equation 16 to the output gap.…”

“…The construction of the data set and the calibration of the model also follow the approach outlined in Makrelov et al (2018). We construct financial macro social accounting matrices (SAMs) for the South African economy over the period 2001 to 2012.…”

On the design of empirical stock–flow consistent models

“…17 Michelena and Nahuel Guaita (2017) propose a model for Argentina that uses country data for a simplified representation of the economy, where model parameters are calibrated. Makrelov et al (2018) adopt the SFC methodology for linking flows to financial stocks, while adopting DSGE-type assumptions for household and other agents' decisions, again resulting in calibrated parameters, and only a loose connection to the national accounting and balance sheet data for the country they model, South Africa.…”

On the design of empirical stock–flow consistent models

“…They identify the most relevant flow payments among such sectors, and impose restrictions on UK data to build the model transaction matrix and balance sheet. 16 Some model parameters are calibrated, while others are estimated.17 Michelena and Nahuel Guaita (2017) propose a model for Argentina that uses country data for a simplified representation of the economy, where model parameters are calibrated Makrelov et al (2018). adopt the SFC methodology for linking flows to financial stocks, while adopting DSGE-type assumptions for household and other agents' decisions, again resulting in calibrated parameters, and only a loose connection to the national accounting and balance sheet data for the country they model, South Africa.…”