Social Accounting Matrix - Applications

Applications

SAMs can be easily extended to include other flows in the economy, simply by adding more columns and rows, once the standard national account (SNA) flows have been set up. Often rows for ‘capital’ and ‘labor’ are included, and the economy can be disaggregated into any number of sectors. Each extra disaggregated source of funds must have an equal and opposite recipient. So the SAM simplifies the design of the economy being modeled. SAMs are currently in widespread use, and many statistical bureaus, particularly in OECD countries, create both a national account and this matrix counterpart.

SAMs form the backbone of Computable general equilibrium (CGE) Models, various types of empirical multiplier models, and the Input-output model.

Appropriately formatted SAMs depict the spending patterns of an economy, as with IMPLAN and RIMS II data, and can be used in economic impact analysis.