M.Comm. (Financial Economics) / This study provides an assessment of the comparative effectiveness of four methods of estimating the optimal hedge ratio in the South African equity and futures markets. This study bases the effectiveness of hedging on volatility reduction and minimisation of the coefficient of variation of hedged returns as well as the risk-aversion based on utility maximisation. The empirical analysis shows that the static single equation method estimated by ordinary least squares is the most effective over daily hedging periods. However, the vector error-correction method and multivariate GARCH methods are most effective over weekly and monthly hedging periods. Vector autoregression method is the least effective method over all hedging periods.

M.Com. (Economics) / The theoretical principle of the Report is by no means clearly outlined by the Commission although the Report states that it was compiled by experts. The study tried to identify the position of the Report within the broad spectrum of beliefs on monetary policy. For the purpose of analysis, the Monetaristic School, the Keynesian School as well as the ultra free market approach of the Austrian School of Economists were looked at specifically. The study yielded interesting results such as: * The disparagement of the Report of a fixed money supply rule and interest rates which are not allowed to find their own levels at all times, forms an unbridgeable gap between the monetarists and the Commission. Of the most important incidences between the two viewpoints is the fact that inflation is regarded as a monetary phenomenon and that direct control measures are rejected. * The fact that the Report recommends that the money supply be controlled from the demand side and that we therefore, at least in the short term, have to do with an endogenous money supply which is determined by the demand therefore, supports the view of the Keynesian School. * No definite incidences between the Report and the ultra free market approach could be identified. * A more functional approach implies that discretionary decision making power of the monetary authorities ought to be scaled down and altered as the approach of the Commission with regard to control over the money supply is being questioned. The reason for this is that behavourial variables that the Commission tries to influence are not known variables. * A money supply rule in South Africa can presently not be applied effectively as a result of the fact that all markets in the economy are not fully competitive. * It is recommended that more freedom can be g,ranted to the private banking sector in the form of the denationalization of money. It can for example take place through extensive scaling down in discount rendering by the Reserve Bank. Banks are consequently forced to keep their own reserves and to create money on the basis of their current reserves. That alone forms a control mechanism over the creation of money because of the fact that competition between banks will ensure that no bank would like its currency to depreciate against the currencies of the other banks as a result of excessive money creation.

LL.M. / Please refer to full text to view abstract

M.Com. (Economics) / This study looked into the possible presence of structural inflation in South Africa. The South African rate of inflation has, by the time this study was undertaken, showed resistance to reduce in the face of several years of demand management policies. It was this resistance that led to the idea that the South African inflation rate might be the result of several structural factors in the economy. The study was done in three separate stages. In the first, a study of the conventional theories of inflation, the demand-pull and cost push theories, was done. The main objective was to establish whether inflation could be controlled by the medicine these theories prescribed. In section two, the different schools of thought as regards the structural approach to inflation were analyzed. The structuralist school, developed during the late 1950s, described inflation as the result of productivity discrepancies mainly between the agricultural and industrial sectors. The structural school, which developed during the early 1970s has two variations. The first, the Scandinavian variant, ascribes inflation to the existing productivity gap between the international competing sectors and the domestic sectors, whilst no corresponding gap in salaries between the relevant sectors exists. The second variant designates inflation to the gap existing between the labour productivity in the public and private sectors. Here again, no such salary gap exists between the sectors. The last structural inflation school of thought discussed was the one prevailing in the USA. This school saw inflation as the result of the unproductive use of capital and labour when measured against the incomes generated by the same factors of production. In section three of the study, the abovementioned theories of structural inflation were empirically applied in the South African context. In all cases very definite pointers, indicating the applicability ·of these theories in the South African situation were found. In all cases two main sector groups were constructed; each consisted as the sum of the weighted productivity of wages of the sectors belonging to that sector group i.e. internationally or domestically competitive and public or private competing groups. The constructed series for labour productivity and wages and salaries for the different sector groups were then compared.

D.Com. (Economics) / The objective in writing this thesis was to investigate the capital structure of South African manufacturing industry and the implications of this structure for policy formation relating to industry. The capital stock of the 27 branches of the manufacturing industry were calculated by means of the perpetual inventory method based on the following assumptions: capital formation excludes transactions relating to inventory, durable consumer goods and financial assets; transactions in land and other fixed assets were taken into consideration; leasing was regarded as investment and capitalised at ten times the annual base payment in respect of land and buildings and five times in respect of machinery and transport equipment; and transfer costs on property and existing buildings were treated as part of fixed investment. Cencuses compiled by the Department of Statistics were the main source of information in the calculation of investment. Depreciation was based on the straight-line-method. Price indices from various sources, including those compiled by the Reserve Bank, were used. The economic life of fixed assets for the various branches of the manufacturing industry was chosen after consultation with experts in the various industries and an analysis of information obtained by questionnaire. It was found that the real capital stock of manufacturing industry increased by 1 247 per cent during the period 1945-1975, i.e. at an average annual rate of 8,8 per cent. The basic iron and steel industry with a capital stock (valued at 1975 replacement values) or R2 478,4 million in 1975 was the largest absolute consumer of capital followed by the food industry ...

M.Com. (Economics) / Please refer to full text to view abstract

LL.M. / Please refer to full text to view abstract

LL.M. / Please refer to full text to view abstract

LL.D. (Law) / Please refer to full text to view abstract.

D.Com. (Accounting) / The income potential and operational advantages of a broad-based sales tax justify the reliance there upon to produce a material part of the tax revenue of a country with a large third-world element in its economy. Since the introduction of sales tax in 1978 it has developed from a relatively inferior tax into an important element of the South African tax structure presently yielding in excess of 25% of total tax revenue. The relevant statute, namely the Sales Tax Act 103 of 1978, has subsequently been amended to ensure certain structural and operational changes to the sales tax system and the rate has been increased from 4% to 12%. The question may therefore well be asked whether the present sales tax system upholds the criteria for an acceptable tax system, namely equity and efficiency, and still meets with the demands of the advancement that has taken place in the south African economy. This issue is fuelled by the common concern expressed about the apparent unacceptable levels of sales tax avoidance and evasion. In order to answer this question a framework for a sales tax system that would ideally suit the economic structure and social conditions of South Africa was devised. This framework shortly requires the sales tax system to be fair, simple, certain and neutral. The existing sales tax system was tested against this framework and apart from certain breaches, such as the taxation of capital and certain intermediate goods and the insufficient official divulgence of information, it was found to be generally efficient. Furthermore, due to the fact that the consumption of exempt foodstuffs decline much faster, as a proportion of income, than the consumption of taxed goods and services as income increases, the sales tax burden was found to be distributed proportionally over the income range. The recent widespread adoption of value added taxes has lead the study to examine and evaluate the additive-, subtractive- and invoice methods of value added taxation...