Abstract
This paper combines a Social Accounting Matrix (SAM) with a Linear Programming (LP) model for impact analysis and the allocation of resources among alternative sectors. The model is applied to the Golestan Province of Iran. A SAM is used to analyse the impact of economic policy on Gross Regional Product (GRP), job creation for different educational groups among the labour force, mean personal income and income inequality. The mean GRP of the region is formulated as an objective function, with job creation, income inequality, and supply and demand limitations of sectors formulated as constraints of the model. By combining an LP model with a SAM it is possible to determine the activity level of sectors to meet the maximum level of GRP for a region with respect to related goals and constraints. The linking of a SAM with an LP model allows the positive points of each model to be combined in a new model with greater capabilities. The results of implementation of the model can be used for resource allocation and policy-making purposes.
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