In this thesis I address several neglected issues relating to the theoretical and applied analysis of human capital and the impact of taxation. I begin with the problem of measuring the effective tax rate on human capital accumulation. I develop a forward-looking measure of the effective tax rate that is grounded in human capital theory, allowing for features that differentiate human capital formation from physical capital formation. These features include concavity of the earnings-investment frontier and adjustments in capital utilization through leisure. I argue that the few attempts that have been made to measure the effective tax rate on skill formation are either limited by the fact that they inherit assumptions applicable to the theory of the firm or have dubious theoretical foundations (Chapter Two). The new measure is used to derive the effective tax rate on human capital in 25 OECD countries, including Australia (Chapter Three). While there are numerous general equilibrium models which integrate nominal rigidities of one form or another, little attention has been devoted to nominal rigidities arising from partial indexation of income tax thresholds. No doubt one of the reasons for this gap in the literature is the difficulty associated with introducing a fully specified progressive tax regime into an applied general equilibrium model. I show that this hurdle can be overcome through a zero-profit condition for general equilibrium on the labour market. The condition is integrated into an aggregative model of the economy consisting of two sectors (consumption and education) and two factors of production (skilled and unskilled labour). Since skill formation is endogenous, the model allows us to reopen research into the optimal level of skill formation and the role of government (Chapter Four). An applied general equilibrium version of the model is used to evaluate the impact of recent tax reform proposals on skill formation (Chapter Five). A concluding chapter draws together these lines of enquiry with suggestions for future research (Chapter Six).

In this thesis I address several neglected issues relating to the theoretical and applied analysis of human capital and the impact of taxation. I begin with the problem of measuring the effective tax rate on human capital accumulation. I develop a forward-looking measure of the effective tax rate that is grounded in human capital theory, allowing for features that differentiate human capital formation from physical capital formation. These features include concavity of the earnings-investment frontier and adjustments in capital utilization through leisure. I argue that the few attempts that have been made to measure the effective tax rate on skill formation are either limited by the fact that they inherit assumptions applicable to the theory of the firm or have dubious theoretical foundations (Chapter Two). The new measure is used to derive the effective tax rate on human capital in 25 OECD countries, including Australia (Chapter Three). While there are numerous general equilibrium models which integrate nominal rigidities of one form or another, little attention has been devoted to nominal rigidities arising from partial indexation of income tax thresholds. No doubt one of the reasons for this gap in the literature is the difficulty associated with introducing a fully specified progressive tax regime into an applied general equilibrium model. I show that this hurdle can be overcome through a zero-profit condition for general equilibrium on the labour market. The condition is integrated into an aggregative model of the economy consisting of two sectors (consumption and education) and two factors of production (skilled and unskilled labour). Since skill formation is endogenous, the model allows us to reopen research into the optimal level of skill formation and the role of government (Chapter Four). An applied general equilibrium version of the model is used to evaluate the impact of recent tax reform proposals on skill formation (Chapter Five). A concluding chapter draws together these lines of enquiry with suggestions for future research (Chapter Six).

Thesis (Ph.D. (Economics))--North-West University, Potchefstroom Campus, 2008.

Thesis (M.Com. (Economics))--North-West University, Potchefstroom Campus, 2008.

South Africa's North West Province is dependent on gold and platinum exports for its economic growth and employment. Whether this specialisation is optimal from an economic growth, employment creation and welfare point of view, or whether greater export diversification should be encouraged, can most appropriately be evaluated using a general equilibrium framework. Moreover, the answer of whether such specialisation or rather diversification is appropriate may differ depending on the spatial level of analysis that is taken. For instance, export diversification or specialisation on a national level might differ from export diversification or specialisation on sub-national (e.g. provincial) level. A general equilibrium framework is most appropriate for investigating the potential differences between these levels as it takes into consideration a region's economic structure, and the economy-wide linkages between demand, supply, production structure and income distribution. In this light this thesis proposes a regional applied general equilibrium (RAGE) model for the North West Province to address these issues. The question asked is, how can a RAGE model be formulated and implemented for the North West Province of South Africa in order to study the differential impacts of greater export specialisation versus greater export diversification? In answering this question this thesis provides policy makers at regional/provincial level with access to a potentially useful modelling tool, to analyse regional economic issues; it contributes to better understanding the spatial concentration and spatial dynamics of economic activity in the North West Province; and contributes toward the practical policy debate in South Africa. This thesis reviews the literature on export diversification and specialisation, by investigating the extent of export diversification and specialisation in the North West Province over the period 1995-2006 and its relationship to GDP per capita, and using a RAGE model to investigate the economy-wide impacts of greater export diversification versus greater export speciaRsation. These results are contrasted by investigating the economy-wide impacts of greater export diversification versus greater export specialisation on the national level, using a country-wide applied general equilibrium (AGE) model for South Africa. It is found that greater export diversification results in a more substantial increase in exports (of between 0.95 and 1.73 per cent) than in the case of greater export specialisation. In fact it was found that if the North West Province were to specialise in mining exports, such exports would need to grow or increase from the base year by approximately 78 per cent (with no increase in the export demand for other sectors) to result in the same level of growth of total export volumes as is found under export diversification. Avenues for further research are identified. These are a need for more research on elasticities and parameters at regional level, an expansion of the transport services sector in the model, incorporating Tourism Satellite Accounts, BEE and SMME aspects into the model, etc. In conclusion, the thesis implemented the first provincial regional applied general equilibrium model for South Africa, and illustrated that it can make an important contribution to the policy debate on a provincial level in South Africa. The construction of Social Accounting Matrices (SAMs) for all of South Africa's provinces, and the maintenance of these provincial databases could therefore make further contributions to the quantitative assessment of policy options facing government on both the national and provincial level. / Thesis (Ph.D. (Economics))--North-West University, Potchefstroom Campus, 2008.

Thesis (M.Com. (Economics))--North-West University, Potchefstroom Campus, 2008.

Thesis (M.Com. (Economics))--North-West University, Potchefstroom Campus, 2008.

South Africa's North West Province is dependent on gold and platinum exports for its economic growth and employment. Whether this specialisation is optimal from an economic growth, employment creation and welfare point of view, or whether greater export diversification should be encouraged, can most appropriately be evaluated using a general equilibrium framework. Moreover, the answer of whether such specialisation or rather diversification is appropriate may differ depending on the spatial level of analysis that is taken. For instance, export diversification or specialisation on a national level might differ from export diversification or specialisation on sub-national (e.g. provincial) level. A general equilibrium framework is most appropriate for investigating the potential differences between these levels as it takes into consideration a region's economic structure, and the economy-wide linkages between demand, supply, production structure and income distribution. In this light this thesis proposes a regional applied general equilibrium (RAGE) model for the North West Province to address these issues. The question asked is, how can a RAGE model be formulated and implemented for the North West Province of South Africa in order to study the differential impacts of greater export specialisation versus greater export diversification? In answering this question this thesis provides policy makers at regional/provincial level with access to a potentially useful modelling tool, to analyse regional economic issues; it contributes to better understanding the spatial concentration and spatial dynamics of economic activity in the North West Province; and contributes toward the practical policy debate in South Africa. This thesis reviews the literature on export diversification and specialisation, by investigating the extent of export diversification and specialisation in the North West Province over the period 1995-2006 and its relationship to GDP per capita, and using a RAGE model to investigate the economy-wide impacts of greater export diversification versus greater export speciaRsation. These results are contrasted by investigating the economy-wide impacts of greater export diversification versus greater export specialisation on the national level, using a country-wide applied general equilibrium (AGE) model for South Africa. It is found that greater export diversification results in a more substantial increase in exports (of between 0.95 and 1.73 per cent) than in the case of greater export specialisation. In fact it was found that if the North West Province were to specialise in mining exports, such exports would need to grow or increase from the base year by approximately 78 per cent (with no increase in the export demand for other sectors) to result in the same level of growth of total export volumes as is found under export diversification. Avenues for further research are identified. These are a need for more research on elasticities and parameters at regional level, an expansion of the transport services sector in the model, incorporating Tourism Satellite Accounts, BEE and SMME aspects into the model, etc. In conclusion, the thesis implemented the first provincial regional applied general equilibrium model for South Africa, and illustrated that it can make an important contribution to the policy debate on a provincial level in South Africa. The construction of Social Accounting Matrices (SAMs) for all of South Africa's provinces, and the maintenance of these provincial databases could therefore make further contributions to the quantitative assessment of policy options facing government on both the national and provincial level. / Thesis (Ph.D. (Economics))--North-West University, Potchefstroom Campus, 2008.

Der Austausch von Waren, Dienstleistungen und Arbeitskräften wird im Falle von politischen Konflikten gestört. Im Palästinensisch-Israelischen Konflikt macht die Machtasymmetrie die palästinensische Wirtschaft abhängig von Israels Politik. Obwohl dieser Konflikt wegen seiner Gewalt und seinen politischen Entwicklungen in den Medien viel beachtet wird, wurden politische Optionen in den Bereichen Handel und Arbeitsmärkte und deren Auswirkungen auf die palästinensische Ökonomie bislang wenig untersucht und bewertet. Dies ist das Ziel der vorliegenden Arbeit, die sich auf die Ökonomie des Westjordanlands konzentriert. Diese Arbeit macht vier Beiträge zur Wissenschaft: Der erste ist die Entwicklung der ersten Sozialrechnungsmatrix für das Westjordanland. Der zweite ist die empirische Analyse von Auswirkungen unterschiedlicher Arbeitsmarktbedingungen in Gleichgewichtsmodellen. Der dritte ist die Anwendung einer verschachtelten Nutzen-Funktion, die die Vorteile von linearen Ausgabesystemen und konstanter Elastizität von Substitutionsfunktionen kombiniert. Schließlich hat diese Arbeit wichtige politische Implikationen für die Palästinensischen Autonomiebehörde (PA). In Bezug auf die Arbeitsmärkte wird gezeigt, dass es für die PA sinnvoll ist eine verstärkte palästinensische Beschäftigung in Israel anzustreben. Dabei sollten die negative Auswirkungen von aus Israel zufließendem Arbeitseinkommen („Holländische Krankheit“) gelindert werden. Dies könnte die PA durch Besteuerung von palästinensischer Beschäftigung in Israel und Schaffung von Anreizen zur Erhöhung der internationalen Wettbewerbsfähigkeit erreichen. In Bezug auf den Handel zeigt diese Arbeit, dass das die PA eine liberale, nicht diskriminierende Handelspolitik verfolgen sollte. Da Israel auch in Zukunft wohl der dominierende Handelspartner für das Westjordanland bleiben wird, sollte die PA die freiest mögliche Mobilität von Gütern und Dienstleistung zwischen dem Westjordanland und Israel anstreben. / The movement of goods, services and labour is disrupted when conflicts arise. In the case of the Palestinian-Israeli conflict, the asymmetry of power between the two parties leaves the Palestinian economy vulnerable to policies implemented by Israel. While this conflict attracts considerable media attention for its violence and political developments, the assessment of the economy-wide implications of trade and labour market policy options on the Palestinian economy is understudied. Exploring these implications is the objective of this thesis, focusing on the West Bank economy. This thesis makes four contributions to science. The first original contribution is the development of the first social accounting matrix for the West Bank. Second, this thesis contributes to the current state of knowledge by assessing empirically the implications of different labour market conditions in general equilibrium models. Third, this thesis contributes to model development by adopting a nested utility function combining the benefits of linear expenditure systems and constant elasticity of substitution functions to depict household preferences. Finally, this thesis has important policy implications for the Palestinian National Authority (PNA). Seen the limited development options in the West Bank, it is interesting for the PNA to seek an increased Palestinian employment in Israel in order to improve the welfare of Palestinian households. Meanwhile, the “Dutch disease” effects of labour income inflow from Israel can be mitigated by collecting a tax on Palestinians employed in Israel and incentivising the private sector to invest and create employment opportunities in the domestic market. With respect to trade, this thesis finds that the West Bank would be better off with a liberal and non-discriminatory trade policy. As Israel will remain the main trade partner for the West Bank, the PNA should seek the freest possible movement of goods and services between the West Bank and Israel.