Growth, Water Resilience, and Sustainability: A DSGE Model Applied to South Africa

In this paper, we analyze a dynamic stochastic general equilibrium model on how water resilience a¤ects economic growth and dynamic welfare with special reference to South Africa. While water may become a limiting fac- tor for future development in general, as a drought prone and water poor country with rapid population growth, South Africa may face more serious challenges for sustainable development. Using the model,…

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