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South African Journal of Economic and Management Sciences

versión On-line ISSN 1015-8812

S. Afr. j. econ. manag. sci. vol.12 no.3 Pretoria oct. 2009

 

ARTICLES

 

Who would eat more with a food voucher programme in South Africa?

 

 

Jan H van Heerden

Department of Economics, University of Pretoria

 

 


ABSTRACT

A Computable General Equilibrium model is used to find the effects of a food voucher scheme on the economy in South Africa. If firms consider the issuing of vouchers as increased remuneration, they will hire fewer labourers. The higher labour cost increases the total cost of production and lowers supply. Real Gross Domestic Product decreases and the economy becomes worse off. However, depending on the size of the government's involvement in such a scheme as well as the tax policies that are used to fund it, a food voucher scheme could benefit the poor, and improve the distribution of wealth in the country.

JEL D58


 

 

“Full text available only in PDF format”

 

 

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