A re-evaluation of the estimated overcharge by the South African cement cartel
Date
2022
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Abstract
The topic of overcharge estimation regarding cartels is scarce in both the international and domestic regard. This paper aims to re-estimate the overcharge by the South African cement cartel after it was forced to disband following the end of the apartheid regime. In order to avoid the problem of spurious regression results, the time series data are thoroughly analysed for unit roots. To combat the presence of the confirmed nonstationarity, an error correction model is employed in order to yield more accurate estimates. When controlling for nonstationarity, it is found that the price overcharge is higher than that provided by static ordinary least squares regressions and is on par with more recent estimates.
Description
A dissertation submitted in fulfilment of the requirements for the degree of Master of Commerce to the Faculty of Commerce, Law and Management, University of the Witwatersrand, Johannesburg, 2022
Keywords
Overcharge, South Africa