Budget deficit and long-term interest rates in South Africa

DSpace/Manakin Repository

Show simple item record

dc.contributor.author Bonga-Bonga, Lumengo
dc.date.accessioned 2012-10-30T19:57:39Z
dc.date.available 2012-10-30T19:57:39Z
dc.date.issued 2012
dc.identifier.citation Bonga-Bonga, L. 2012. Budget deficit and long-term interest rates in South Africa. African Journal of Business Management, 6(11):3954-3961 en_US
dc.identifier.issn 1993-8233
dc.identifier.uri http://hdl.handle.net/10210/7965
dc.description.abstract This paper investigated the extent of the effects of the systematic and surprise changes in budget deficits on the long-term interest rate in South Africa. Use was made of the identified cointegrating vector autoregressive (VAR) techniques whereby cointegrating vectors were identified based on the Fisher effect theory and the expectation hypothesis of the term structure to assess the effect of systematic changes in budget deficit on the long-term interest rate. Moreover, the generalised impulse response functions obtained from the cointegrating VAR were used to assess the effect of the surprise change in budget deficit on the long-term interest rate. The results of the paper showed a positive relationship between the budget deficits and long-term interest rate under different assumptions of price expectations by economic agents. en_US
dc.language.iso en en_US
dc.publisher Academic Journals en_US
dc.rights © Academic Journals. 2012. Available online at http://www.academicjournals.org/AJBM. DOI: 10.5897/AJBM11.713 en_US
dc.subject Budget deficit - South Africa en_US
dc.subject Long-term interest rates - South Africa en_US
dc.subject Cointegrating vector autoregressive (VAR) en_US
dc.subject Fisher effect en_US
dc.subject Inflation - South Africa - Forecasting en_US
dc.title Budget deficit and long-term interest rates in South Africa en_US
dc.type Article en_US

Files in this item

This item appears in the following Collection(s)

Show simple item record

Search UJDigispace


Advanced Search

Browse

My Account