National and Regional Impacts of an Increase in Value-Added Tax: A CGE Analysis for South Africa

The South African National Treasury expected a revenue shortfall of R48.2 billion in 2017/18 and proposed tax policy measures to raise an additional R36 billion in 2018/19. A key component to raise the additional revenue was a 1% point increase in the VAT rate to 15% effective from 1 April 2018. The increase in the VAT rate was not welcomed as it would increase the cost of living, especially for the poor. We investigate the potential economy-wide and regional impacts of raising VAT and increasing public spending on education and health. We do this by developing and applying a multi-regional model of the South African economy that includes detailed tax and spending features. In this model, when we increase VAT, the impacts are driven by the direct shock to the model, accompanied by differences in regional economic activity. We find that effects on GDP vary between regions but are generally negative.     

The Discount to NAV of Distressed Open-End Real Estate Funds

The Journal of Real Estate Finance and Economics - This paper examines the discount to NAV in the context of distressed German open-end real estate funds. This is a unique setting to study NAV...     

Erwiderung

Ohne ZusammenfassungDie Erwiderung bezieht sich auf die Besprechung von H. Sieveking, Die Gestaltung der Handelspolitik in den wichtigsten Ländern durch G. Haberler, Wien in Heft 2, Band III, S. 284.     

Uncoupled Aspiration Adaptation Dynamics Into the Core

Dynamics for play of transferable‐utility cooperative games are proposed that require information regarding own payoff experiences and other players’ past actions, but not regarding other players’ payoffs. The proposed dynamics provide an evolutionary interpretation of the proto‐dynamic ‘blocking argument’ (Edgeworth, 1881) based on the behavioral principles of ‘aspiration adaptation’ (Sauermann and Selten, 1962) instead of best response. If the game has a non‐empty core, the dynamics are absorbed into the core in finite time with probability one. If the core is empty, the dynamics cycle infinitely through all coalitions.     

Cross-Sectional Profitability of Namibian Formal Small-Scale Mining Firms in 1990

Namibia considers formal small-scale mining firms (FSSMFs) as an important part of the solution to the problems of high unemployment, poverty, and the diminishing role of large-scale mining firms facing the country. However, to be a solution FSSMFs must be profitable first. This paper examines and presents simple estimates and tests of the probability of 25 Namibian SSMFs being profitable. The results suggest that in terms of productivity, specialization, size and structure, small is not as beautiful as generally presented. The findings recommend capital formation and competitive diversification of production and products.     

The King Never Emigrates

This paper uses a locational model of rent-seeking to describe incentives to emigrate. A country is considered in which how a person fares in privileged income redistribution is determined by proximity to a king. Contests for privilege determine whether the more or the less productive in the population are located closer to the king. A distinction is drawn between contests for privilege that are "easy" and "difficult." When contests are "easy," the more productive are furthest from the king and emigrate first. When contests are "difficult," the least productive emigrate first. In either case, the population begins to unravel.     

Who Perceives the Collective Past and How? Are Refusals on Open-ended Questions Substantial Answers?

Quality &; Quantity -     

The performance of small mines in Namibia and the region

Both large and medium‐sized mines in southern Africa are contributing less to the economy owing to rising production costs and poor demand for minerals. Politicians argue that small mines can make an important economic contribution. But this analysis shows that small mines face real constraints and that there are clear prospects only in semiprecious and dimension stones. Specific research is needed to help small mines overcome their limitations.     

Verfassungsrechthiche Aspekte der Reform der PKV

On January 1, 2009, the Act to Strengthen Competition in the Statutory Health Insurance System (GKV-WSG) became effective. By final judgement of June 10, 2009, the Federal Constitutional Court declared the health insurance reform compatible with the German Basic Law. Nevertheless, the GKV-WSG fails to comply with the constitutional basic rights of the private health insurance companies, such as freedom of professionalism, the guarantee of properties, the freedom of association and the basic right of general freedom of action. Furthermore the constitutional freedom of contract as well as the principal of protection of legal confidence are violated. In addition, with the GKV-WSG the legislator introduced an unconstitutional special charge: The private health insurance companies and their insurants are held liable to pay for public health needs instead of financing them by tax money. This results in a disproportional claim of private persons for public social needs which is inadmissible by constitution.