Since 1980, South Africa recorded massive budget deficits except in 2007 and 2008 when the budget surpluses as a percentage of GDP respectively stood at 0.3 per cent and 0.7 per cent. This stirred a great debate on whether budget deficits in South Africa are a result of poor governance or are due to the magnitude of the economic problems that the government seeks to alleviate. Therefore, this study examines the economic determinants of budget deficits in South Africa for the period 1980 -2010. Specifically, the study seeks to ascertain if budget deficits in South Africa are a result of the fight against economic problems. The Vector Error Correction Model (VECM) was used to determine the impact of selected macroeconomic variables on budget deficits in South Africa. The results revealed that all the determinants have a positive impact on budget deficits except for foreign debt. However, foreign reserves explain the largest component variation of budget deficit followed by foreign debt, unemployment, economic growth and government investment, in that order.
Informed inflation expectations facilitate the extemporisation of a proper monetary policy framework that allows for the achievement of economic objectives, among them price stability. This study used the vector autoregression model to assess the impact of crude oil prices and exchange rates on inflation expectations in South Africa. Monthly time-series data for the period July 2002 to March 2013, obtained from the electronic database of the South African Reserve Bank were used. The study obtained statistically significant results suggesting that both crude oil prices and the exchange rates have a positive impact on inflation expectations in South Africa.
Climate change, population growth and industrial activities continue to threaten water security, especially in the semi-arid regions. Demand management policies are essential in minimising the effects of acute water shortages. Such policies require information on household water consumption patterns and their behavioural practices. This study examines household water consumption behaviour and the adoption of water-efficient appliances in Johannesburg, South Africa. The study uses probit regression models to analyse survey data collected from 889 households during the period November 2017 to February 2018. Results show that while most households do not have water-efficient appliances installed in their homes, they do practise water-efficient behaviour. Older respondents as well as males and lower-income respondents are found to be more likely to practise efficient water-use behaviour. However, biographical variables do not generally influence the adoption of water-efficient appliances. These results are essential for policy-makers when formulating targeted water demand management policies. Thus, policy-makers should focus more on younger people, women and higher-income households when developing campaigns on efficient water-use behaviour.
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