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Abstract

The simulation results presented in this paper provided nuanced policy options for redistribution in South Africa in the face of the looming expropriation of land without compensation. The simulation done through Computable General Equilibrium approach using the modified University of Pretoria General Equilibrium Model (UPGEM) which is solved using a GEMPACK solution software. The simulation revealed that there will be adjustment costs regardless of the option(s) chosen. The Inclusive Scenario came up as the most suitable policy option in terms of minimal adjustment costs and allowing the sector to continue to grow, albeit at a lower rate compared to the status quo.

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