Welcome to the Department
Welcome to the Department of Economics at Stellenbosch University. We are one of the oldest Economics departments on the continent and one of the largest in the university. We are dedicated to quality research and teaching, with a focus on economic issues pertaining to South Africa and Africa. For any information not on this site, please contact the department.
Prof Stan du Plessis appointed as Dean
Stan du Plessis, professor in the Economics Department and current vice-dean (research), has been appointed as the new dean of the Faculty of Economic and Management Sciences from 1 April 2014.
Among other aims, he endevours to focus on strengthening the Faculty's research profile through external collaboration and expanding the number of doctoral students in the faculty.
The Department is confident that Prof du Plessis will continue to achieve excellent results in the faculty (as he has done in the Department) and looks forward to continue working closely with him in his new position.
(See also the Univerity's announcement).
Prof. Basil Moore lost in the Groot Drakenstein mountains for 5 days
On the morning of Wednesday 27th November, Prof. Basil Moore, extraordinary professor in the Department of Economics, left for his usual one to two hour runs from his farm in the Banhoek Valley. He set off in his ‘bakkie’ with his two Rhodesian Ridgebacks. He parked in his usual spot beside the old Anglo-American orchards. Feeling particularly good, he accidently found the old path up to the burned-down mountain hut on the Groot Drakenstein mountain. The path above the hut was very over grown, and he soon became lost in the dense fynbos below the cliffs of the mountain. Having chosen the most direct option towards home, he descended into the valley, but in the mountain’s water catchment area, the bush and shrubs became near impenetrable.
The next morning Prof. Moore found himself quite disoriented due to the very thick fynbos. He continued to push through, but the going became slower and tougher. He failed to make good time, as he descended further and deeper in the valley. By this time Wilderness Search and Rescue (WSAR) used helicopters to survey the area and look for him.
For the next two days, WSAR, local authorities and neighbouring farmers banded together and searched intensively for Prof. Moore. Professional sniffer dogs were brought in to help.
On Sunday morning a searcher came through on the radio that a dog’s bark was heard. Prof. Moore was finally found hanging on to some trees for support. He was bruised, cut up and gaunt; wearing one shoe, with no shirt and only his black running shorts. He spent two nights recovering in the Stellenbosch Medi-clinic but has since returned home and is eager to get back to the hills again. The dogs remain in good health and are happy to see him home.
Prof. Moore’s wife, Sibs, insists that she is not letting him out of her sight until he has been embedded with a tracking device.
Racial Inequality Declines to its Lowest Levels Yet
A comprehensive, two-year long interdisciplinary study by researchers from ReSEP and the Political Science department at Stellenbosch University found that the income gap between race groups is the lowest it has ever been. According to ReSEP member Servaas van der Berg it is no longer true that South Africa’s middle class is mainly white, since black South Africans now represent the largest share of the middle class. Click here for details.
researchers from ReSEP and the Political Science department at
Stellenbosch University found that the income gap between race groups is
the lowest it has ever been. According to ReSEP member Servaas van der Berg it
is no longer true that South Africa’s middle class is mainly white,
since black South Africans now represent the largest share of the middle
class. - See more at: http://resep.sun.ac.za/#sthash.s5EblOba.dpufA comprehensive, two-year long interdisciplinary study by researchers from ReSEP and the Political Science department at Stellenbosch University found that the income gap between race groups is the lowest it has ever been. According to ReSEP member Servaas van der Berg it is no longer true that South Africa’s middle class is mainly white, since black South Africans now represent the largest share of the middle class. - See more at: http://resep.sun.ac.za/#sthash.s5EblOba.dpuf
Horizontalists and Verticalists: 25 years later
The latest issue of the Review of Keynesian Economics includes a special mini-symposium honouring the 25th anniversary of Basil Moore's book, Horizontalists and Verticalists (1988). Basil Moore is Professor Extraordinary in the Department of Economics at Stellenbosch University.
The book has been particularly influential in advocating a "horizontalist" view of monetary policy, which is that in a credit-based economy, the money supply is endogenous and determined by demand, and not by central bank supply of high-powered money, as the "verticalists" believe. In one of the mini-symposium articles, the authors' (Bindseil and König) assessment is that "the book has impressively stood the test of time and, despite part of textbook economics still insisting on the money multiplier as an explanation for the money supply, it is not much of an exaggeration to say that we have all become ‘Horizontalists’ in the last 25 years."
Young Economist 2013 competition - winners announced
The winners of the Die Burger and Department of Economics 2013 Young Economist of the Year competition were announced at a function on Monday evening. First year students taking part in the competition, in teams of two students each, had to forecast economic indicators such as inflation, GDP growth and exchange rates using an electronic platform developed for the purpose. For the first time this year, the competition was opened up to students from the University of Cape Town, resulting in additional competition and an aspect of friendly rivalry between the instititutions.
As it turned out, the team that submitted the most accurate forecasts was from Stellenbosch, while the runners-up were from Cape Town (details here). The winners, William Melville (left in the picture) and Dewald Müller (right), walked away with a prize of R10 000 to share between them. Asked about their experience in the competition, they indicated that it took time and effort to make accurate forecasts. "We tried to read different financial and normal newspapers daily to get us up to date with current affairs and have a feeling for the state of the world economy. As the competition progressed we learnt that we had to take more and more factors into consideration."
"The most challenging was definitely the currency predictions due to the volatile state of the currency and the uncertainty in the world markets at the moment. At the end not just the monetary reward but also the knowledge gained makes the competition definitely worthwhile."
Stellenbosch students win ESSA Founders' Medals
Two students in the Department have won Economic Society of South Africa (ESSA) Founders' Medals this year. ESSA awards these prizes each year for the best thesis in South Africa in four categories (honours, short masters, long masters and doctoral).
Derek Yu has been a researcher and doctoral student at the department, and is currently a lecturer at the University of the Western Cape. His doctoral thesis is entitled Using household surveys for deriving labour market, poverty and inequality trends in South Africa and was completed under the supervision of Servaas van der Berg. The thesis is a thorough investigation of a large number of household surveys conducted in South Africa since the democratic transition in 1994, with a specific focus on methodology, data quality issues and comparability between different surveys. The thesis points out the dangers of naive comparisons across surveys and develops procedures for achieving comparability and addressing other data problems. The work is expected to be useful to many other researchers and to improve the quality of survey data research in South Africa generally.
The prize in the category for Master’s dissertation in full fulfillment of the degree was won by Jeanne Cilliers. Her thesis is entitled Cape Colony marriage in perspective and investigates a new data set of genealogical records to track ancestry and marriage patterns of colonial settlers in South Africa. It examines whether the notion of a European Mariage Pattern (EMP) (due to J. Hajnal, 1965) characterises the marriage patterns that emerged in the Cape Colony in the eighteenth and early nineteenth century, as well as the potential causes for these patterns. Her supervisor was Johan Fourie.
Marisa Coetzee wins 2013 Middleton award
The South African Journal of Economics (SAJE) recently honoured Marisa Coetzee, a researcher and doctoral student in the Department, by awarding her the 2013 Middleton Award for the best article by a first-time SAJE author. Her article was published in the September 2013 issue of the journal and is entitled Finding the Benefits: Estimating the Impact of The South African Child Support Grant. The article uses data from the 2008 South African National Income Dynamics Study (NIDS) and investigates the impact of the child support grant on measures of well-being in terms of health, nutrition and education. The research shows that the grant is indeed linked to better outcomes for the targeted children, even though the effects are small.
Marisa will join the Department as lecturer from 1 January 2014.
Stellenbosch well represented at ESSA2013 conference
A large contingent from the Department of Economics at Stellenbosch University recently attended the very succesful Biennial Conference of the Economic Society of South Africa held in Bloemfontein. A total of 35 papers (click on "Read More" below to see a list) were presented by delegates from the Department and their co-authors. In addition, Servaas van der Berg presented a keynote address entitled "Education, poverty and affluence - a South African perspective" (more detail on the address available here).
Most of the papers can be downloaded in pdf format and all abstracts can be viewed at the conference website.
Stan du Plessis: State-contingent forward guidance could be a "terrible mistake" for central bank
Assurances of low interest rates in the future have in recent times become a policy instrument in the hands of monetary authorities in the USA, the UK and the EU, the idea being to encourage spending in the short run in the face of potential future interest rate increases. But Stellenbosch University professor Stan du Plessis points out that there would be potentially disastrous consequences if this type of policy instrument were adopted in SA. For the SA monetary authorities to commit to low interest rates until unemployment declines could put the central bank in a difficult spot later on by creating expectations that the SARB can in fact control the unemployment rate on a sustained basis, a goal which is beyond the reach of monetary policy. Accepting inappropriate goals could lead to policy confusion and a loss of credibility for the SARB.
Professor du Plessis's comments were published in a recent article in the Financial Mail, which also discusses alternative policies that avoid these pitfalls.
Stellenbosch Research Associate in New York Times debate
Julius Agbor, Research Associate in the Department of Economics at Stellenbosch University, was recently invited to discuss the future of the South African economy in a New York Times Room for Debate event. Dr Agbor argued that "to break away from the vicious circle of tepid growth, perverse distributional incentives and low investment, South Africa needs to shift from deficit-financed consumption and reliance on heavy manufacturing and, instead, develop light manufacturing to employ the many South Africans with low skills." More of the debate can be found here.
Nic Spaull selected as an M&G top 200 young South African
Stellenbosch Economics PhD-student Nic Spaull was chosen as one of Mail & Guardian's top 200 Young South Africans 2013. The Mail & Guardian announced the list on 14 June, two days before South Africa celebrates Youth Day.
Nic is currently completing a PhD in Economics under the supervision of Professor Servaas van der Berg. The title of his PhD is 'Education in South Africa: Access, Quality, Wealth and Accountability'. It is for his contribution to education research in South Africa that Nic was nominated and selected by the Mail & Guardian.
Asked about what the M&G's recognition means, Nic said: "It's encouraging to get external recognition that the work I'm doing is important, and that I'm now in a place where I can contribute in some way to the discourse. When I first came to Stellenbsoch to do my masters I hardly knew anything about social policy and education, only that I was really interested in it. Prof Van der Berg, my supervisor for my masters and my PhD, has taught me practically everything I know about education and social policy. I'm very grateful to have such a dedicated and experienced supervisor who genuinely cares about my research and about why we are doing this research. Although the M&G profile only highlights my research, there is a whole team of researchers (ReSEP) doing important and influential work on poverty, health, education, unemployment etc. All in all I'm proud I got selected - now let's hope that more policy-makers take heed of the call to take evidence-based policy seriously."
Nic is a frequent blogger and frequently contributes to the policy debate. His most recent contribution - a call for South Africa's three cellular companies to make access to Wikipedia free for all subscribers - was published in The Sowetan on Thursday, 13 June.
Prof Jafta new chair of Media24's board of directors
Professor Rachel Jafta, professor of Economics at Stellenbosch University, was appointed chair of Media24s board of directors on Thursday. Prof Jafta is the first woman, and first black woman, to hold this position.
Prof Jafta's research interests are in industrial economics, economics of innovation, international trade and Black Economic Empowerment. She holds a B. Econ (Hons) from the University of the Western Cape, an M. Econ and a PhD (Economics) from the University of Stellenbosch. She has received several awards from Stellenbosch University for excellence in research and community service. In 2011, she was the recipient of the University of Stellenboch's Award for Exceptional Alumni.
Prof Sampie Terreblanche receives Honorary Doctorate from the University of Pretoria
The Economics Department congratulates Prof Sampie Terreblanche who will receive an Honorary Doctorate in Economics from the University of Pretoria on 10 April 2013. This will be Prof Terreblanche's second Honorary Doctorate; the University of the Free State awarded him the degree Doctor Commercii (honoris causa) in April 2005. The University of Pretoria honours Prof Terreblanche for his life long contribution to the economic discipline in South Africa, and specifically for his role in the negotiated political transition of South Africa. UP applauds Prof Terreblanche's critical role in influencing the economic strategies of both the previous and current South African governments and his important role to keep the debate about and the need for socio-economic and socio-political reform in South Africa going.
Competition policy to the fore
Dr Willem Boshoff organised a workshop on ‘Time Series and Competition Policy' from 4 to 5 March, to discuss research employing time-series data in understanding competition problems. The workshop, funded by Economic Research Southern Africa, attracted participants from South African universities, consulting firms, and the Competition Commission.
As part of his visit to the Department, Prof Daniel Rubinfeld (UC Berkeley & NYU) participated in the workshop, delivering a keynote address on challenges in merger control. Other international participants included Prof Kai Hüschelrath (ZEW & Mannheim) and Prof Elena Argentesi (Bologna).
Economics lecturer nominated for G20 Youth Summit
Kholekile Malindi, a Junior Lecturer at the Economics Department, has recently been nominated and selected to represent Stellenbosch University at the 7th annual G20 Youth Summit to be held at St. Petersburg, Russia, in April. Stellenbosch University will also be represented by two students, Sandy Majola and Emma Johannes. The trip to Russia is generously sponsored by the Rector’s office.
The G20 Youth Summit is one of four main events that are scheduled to run concurrently with each other and organised by the G20 Youth Forum. The three other events include a Conference, an International Young Parliamentarians’ Debate, and an Alumni Meeting. With regards to the Youth Summit, 150 to 200 students and young experts in G20 countries from the fields of economics, law, international relations and finance are selected to be young Heads of States and Ministerial delegates. Kholekile will be attending the Summit as the Minister of Finance. The end result of the Summit will be a report containing recommendations discussed and approved by the Summit participants. The report will be handed over to G20 Heads of States and international institutions like the IMF.
Kholekile has just recently returned from a 6 month student semester exchange to Georg-August University Goettingen. The international exposure and participation in international youth leadership events will provide an excellent springboard to launch Kholekile’s already promising academic career.
Francis Teal visits Stellenbosch
Francis Teal just completed a two week visit to the Department of Economics. He was the deputy director of the Centre for Studies of African Economies at Oxford University from 1996 until 2012 and is an international expert in the fields of applied micro-econometrics and African labour markets. He has worked on a wide range of trade and development policy issues; currently he is working on projects studying the evolution of firms in Africa and labour markets.
Dr. Teal visited Stellenbosch as part of a research project, funded by the faculty's Elite Research Fund, that attempts to measure the effect of schooling investment on the labour market outcomes of South African workers. He was also the keynote speaker at a ReSEP workshop, delivered a presentation at a departmental seminar and had meetings with graduate students about their research.
Research associates boost collaboration
Martine Mariotti, lecturer in economic history at Australian National University and research associate at Stellenbosch University, and Juergen Meinecke, lecturer in microeconomics at Australian National University are spending a mini-sabbatical in Stellenbosch from 23 January to 8 April 2013.
Dr Mariotti is an expert on quantitative South African economic history and is involved in the department through supervision and research collaboration. Dr Mariotti will also lead the ERSA Workshop on the Economics of Apartheid, to be held in Cape Town from 20 to 22 March. Both Dr Mariotti and Dr Meinecke will present seminars in the department.
Best Economics students receive awards
Several prizes were handed out on Tuesday night at the annual graduate awards ceremony at Moore's End in the beautiful Dwarsrivier Valley. Alexandra Doyle (pictured with prof Andrie Schoombee) was awarded the prestigious Cloete medal for her excellent undergraduate performance in Economics, achieving an average of 88.5% over her three undergraduate years. She is currently enrolled for a graduate degree at the University of Cape Town.
Other winners included Carel Kleynhans and Morné Hendriksz who shared the graduate Cloete medal for achieving an average of 80% in the Honours and Masters programmes, respectively. Genesis Analytics also awarded the top 5 third-year and Honours graduates.
Neil Rankin appointed as Associate Professor
Neil Rankin joined the Department of Economics at Stellenbosch University in February 2013 as Associate Professor. Prof Rankin is an applied micro-economist working in the areas of labour markets, firms, pricing, trade and impact evaluation. One stream of his current research work examines the links between company performance and labour market outcomes in an African context, and particularly the impact of trade at a microeconomic level. As part of his research he has managed and administered firm and labour market surveys in Ghana, Nigeria, South Africa, Rwanda and Tanzania. He is also currently the principle investigator on a number of impact evaluation projects including a randomised control trial that investigates the impact of possible interventions on youth unemployment in South Africa.
Daniel Rubinfeld visits Stellenbosch
Prof Daniel Rubinfeld will visit the Department of Economics at Stellenbosch University from Wednesday 27 February to Thursday 7 March. Prof Rubinfeld is the Robert L. Bridges Professor of Law and Professor of Economics Emeritus at University of California (Berkeley) and Professor of Law at New York University. He is a distinguished academic, with wide-ranging scholarly work in applied microeconomics, econometrics, public policy, and industrial organization. His publication list includes seven books, over seventy articles in leading scholarly journals, and more than forty articles in books. Prof Rubinfeld is actively involved in competition policy practice; he was deputy assistant attorney general at the US Department of Justice and acted as expert consultant in landmark US competition cases. He has held a number of visiting professorships at leading American and European universities.
Prof Rubinfeld will be presenting a seminar on Friday (1 March) in Room 104 on network effects in the airline industry and their implications for consumer welfare. Please join us for lunch on the second floor of the Schumann Building at 13:30, after which we the seminar will commence at 14:15.
Apart from the seminar Prof Rubinfeld will also:
- Present a graduate class on the econometrics of antitrust
- Act as keynote speaker at the ‘Time series and competition policy' workshop I am organizing at Stias on 4 and 5 March
Rachel Jafta delivers inaugural lecture
On Tuesday, 5 February, Professor Rachel Jafta delivered her inaugural lecture in the Department of Economics. Attended by vice-rector prof Eugene Cloete and several other dignitaries, prof Jafta reflected on the role of social entrepreneurship in society by discussing the "Economics at the Carnival: From social entrepreneurship to social cohesion". She noted that social entrepreneurship, and the innovation and creation of social capital assocated with the activities of social entrepreneurs, are increasingly seen as a means of bridging the gap between the 'formal' world of governments and corporations, and the 'informal' world of community-based organisation and the voluntary sector. Using the Cape Town Carnival as case study she argued that sentiments, such as hope and new perspectives, are not easily quantifiable and therefore often neglected in formal economic analysis.
Rapid progress in education implausible say SU researchers
Stellenbosch University's Servaas van der Berg and Nic Spaull have contested the results published by the Department of Education in December 2012 that suggest that South African Grade 1 to 6 students have made considerable advances in their numeracy and literacy abilities. According to Van der Berg and Spaull, the rapid progress would mean "we have improved more in a single year than Colombia did in 12 years from 1995 to 2007, which was the fastest-improving country of 67 countries tested in an international mathematics and science study for this period". Read the Mail & Guardian article or visit the ReSEP website for more.
Nico Katzke on proposed tax incentives for household savings
National treasury recently released two papers concerning the promotion of household savings through amendments to the saving and investment taxation guidelines for public comment and consultation purposes. The papers suggest specific amendments to current taxation exemptions on discretionary retirement and non-retirement savings through predefined collective investment vehicles, in order to stimulate savings amongst domestic households that are traditionally not too fond of saving. Nico Katzke recently wrote a comment intended to highlight the perils of exposing individuals with low financial literacy to uncertain returns in equity and property markets through such investment vehicles. Click here to read the full comment.
Department appoints extraordinary professors
Profs Basil Moore, Nicola Theron and Evan Gilbert
The Department of Economics is pleased to extend its association with three colleagues to the end of 2015. Professor Basil Moore, originally from Wesleyan University in the USA is a leading figure in the Post Keynesian macroeconomics movement. He has an association with the Department dating from 1985, and teaches a postgraduate course in Post Keynesian macroeconomics. Prof Nicola Theron is managing director of Econex Economic Consulting in Stellenbosch, has previously served on the Competition Tribunal of South Africa and is regarded as one of the foremost competition economists in South Africa. Prof Evan Gilbert has previously been an associate professor at the Department, but has since been appointed in the private sector. He specializes in financial economics, with a particular interest in behavioural finance. The three appointees are active in teaching, research and postgraduate supervision at the department.
ReSEP website launched
The Research on Socio-Economic Policy (ReSEP) group at the Department of Economics today launched a new website which will serve as a resource for researchers and policy-makers interested in issues surrounding socio-economic development in Southern Africa. Spearheaded by Professor Servaas van der Berg, the ReSEP group consists of members of the Department of Economics, contract research staff and graduate students, and developed around a long term research focus on issues of poverty, income distribution, social mobility, economic development and social policy. The new website contains information on ReSEP’s involvement in various research projects, provides access to downloadable working papers, policy briefs, and other research reports produced by members of the ReSEP team, and will in time also provide access to further learning and training materials for policy-makers, researchers, students and others interested in policy debates. Visit the new website at http://resep.sun.ac.za/.