ERSA's new papers

The Economic Research Southern Africa (ERSA) has released three new working papers:

Working Paper 94
Title: Nonparametric estimation when income is reported in bands and at points
Author(s): Martin Wittenberg
Abstract

We show how to estimate kernel density functions of distributions in which some of the responses are provided in brackets, by inverse probability weighting. We consider two cases, one where the data are CAR and where the data are not CAR. We show how the selection probabilities can be estimated by means of the EM algorithm without specifying a parametric distribution function for the variable. A Monte Carlo experiment shows that this procedure estimates the selection parameters fairly precisely. We apply these techniques to earnings data from South Africa’s first post-apartheid nationally representative survey, the 1994 October Household Survey.

Working Paper 95

Title: Perceptions regarding Entrepreneurship in an Emerging and Culturally Diverse Economy: A South African Survey
Author(s): John Luiz and Martine Mariotti
Abstract
Of all the developing countries that participated in the Global Entrepreneurship Monitor survey, South Africa was ranked the lowest, in terms of entrepreneurial activity. It is clear that South Africa is not producing a sufficiently entrepreneurial economy and this needs to be addressed so as to create employment, expand markets, increase production and revitalise communities. This paper examines the entrepreneurial traits of a diverse group of young adults in South Africa. It looks at their attitudes towards and perceptions of entrepreneurship, entrepreneurial opportunities and the broader environment.

Working Paper 96
Title: On the Real Exchange Rate Effects of Higher Electricity Prices in South Africa
Author(s): Jan van Heerden, James Blignaut and André Jordaan
Abstract
The paper uses a static Computable General Equilibrium (CGE) model of South Africa and simulates various shocks to the price of electricity. We attempt different closures to the model and compare their respective effects on the Consumer Price Index. In a CGE model, this is measuring the real appreciation of the exchange rate, or international trade competitiveness. In general, we conclude that electricity prices per se does not significantly influence the real exchange rate, regardless of which closure is used.