An analysis of the burdens and benefits of taxes and government expenditure in the South African economy for the year 1993/1994

Abstract :

Estimates South African households’ income distribution for the year 1993/94, and estimates the burdens and benefits of taxes and government expenditure on households in the economy for the same year. The data set comes from the South African Living Standards and Development Survey (LSD). Household income distribution is estimated using the LSD’s income information, and a pre-redistribution Gini coefficient is calculated. The total tax burdens on households are estimated using a combination of the LSD’s income and expenditure information, and a post-tax Gini coefficient is estimated. Total household benefits from government expenditure are estimated and a post-redistribution Gini coefficient is calculated. An analysis of the extent of income redistribution is undertaken, which involves calculating the extent to which government expenditures offset the tax burden on each household. The results of this study show that whites are the only race group and the richest income quintile is the only income group to experience negative redistribution through the fiscal activities of 1993/94. All other groups benefit to varying degrees from redistribution. The Gini coefficients estimated in this study indicate that income inequality has been considerably reduced by fiscal activities in 1993/94.

 

Details

Author Janisch CA
URL http://hdl.handle.net/20.500.11892/80947
Date Accessioned 2016-09-22T10:15:30Z
Date Available 2016-09-22T10:15:30Z
Date Created 1996
Identifier URL 1997
Language English
Subject Economics
Subject 2 Economics
Alternative Title
Degree Type Masters degree
Degree Description  MSoc Sc