Prof. Nicola Viegi on SAMNet: a new economic modelling network is born


Adapting to the times, ERSA introduces its new initiative – the South African Modelling Network. In this podcast, Margaux G meets up with ERSA’s Deputy Director, Prof. Nicola Viegi who has been actively involved in this new initiative. To find out more about this and what inspired this, take a listen and explore the network.

Is Basel III counter-cyclical: The case of South Africa?

This paper develops a dynamic general equilibrium model with banking and a macro-prudential authority, and studies the extent to which the Basel III bank capital regulation promotes financial and macroeconomic stability in the context of South African economy. The decomposition analysis of the transition from Basel II to Basel III suggests that it is the […]

Welfare analysis of bank capital requirements with endogenous default

This paper presents a tractable framework with endogenous default and evaluates the welfare implication of bank capital requirements. We analyze the response of social welfare to a negative technology shock under different capital requirement regimes with and without default. We show that including default as an additional indicator of capital requirements is welfare improving. When […]

Interaction of Formal and Informal Financial Markets in Quasi-Emerging Market Economies

The primary objective of this paper is to investigate the interaction of formal and informal financial markets and their impact on economic activity in quasi-emerging market economies. Using a four-sector dynamic stochastic general equilibrium model with asymmetric information in the formal financial sector, we come up with three fundamental findings. First, we demonstrate that formal […]

Forecasting the South African Economy: A DSGE-VAR Approach


This paper develops an estimable hybrid model that combines the micro-founded DSGE model with the flexibility of the theoretical VAR model. The model is estimated via the maximum likelihood technique based on quarterly data on real Gross National Product (GNP), consumption, investment and hours worked, for the South African economy, over the period of 1970:1 […]