The Impact of Hosting a Major Sport Event on the South African Economy

Figure 1.2 Standard short run closure

Exogenous

Source: Horridge (2000)

In a typical long run closure, as illustrated by Figure 1.3 the real wage, capital stock, private
consumption, investment, and government consumption are now made endogenous. The rate
of return on capital, employment, trade balance and technology variables, amongst others,
are now exogenous. The closure used in this simulation will be discussed in the following
section.

Figure 1.3 Standard long run closure

Exogenous

Residual

Source: Horridge (2000)

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