01815cas a2200277 a 4500 AALejournalIMF007109 230101c9999 xx r poo 0 0eng d 5.00 USD 9781455227105 1018-5941 BD-DhAAL BD-DhAAL Jooste, Charl. Fiscal sustainability and the fiscal reaction function for South Africa / Charl Jooste, Alfredo Cuevas, Ian Stuart, Philippe Burger. Washington, D.C. : International Monetary Fund, 2011. 1 online resource (27 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students How does the South African government react to changes in its debt position? In investigating the question, this paper estimates fiscal reaction functions using various methods (OLS, VAR, TAR, GMM, State-Space modelling and VECM). The paper finds that since 1946 the South African government has ran a sustainable fiscal policy, by reducing the primary deficit or increasing the surplus in response to rising debt. Looking ahead, the paper considers the use of fiscal reaction functions to forecast the debt/GDP ratio and gauging the likelihood of achieving policy goals with the aid of probabilistic simulations and fan charts. Mode of access: Internet Burger, Philippe. Cuevas, Alfredo. Stuart, Ian. IMF Working Papers; Working Paper ; No. 2011/069 Full text available on IMF http://elibrary.imf.org/view/journals/001/2011/069/001.2011.issue-069-en.xml IMF e-Library