Social Accounting Matrices: Challenges and Prospects of Use in Macroeconomic Statistics

Abstract

The paper presents results of the first stage of research on the construction of social accounting matrices (SAMs) for the Russian Federation as part of the HSE University study on statistical assessment of households’ economic behaviour. The author analyses the methodological foun- dations of SAM compilation, their connection with the System of National Accounts (SNA) and their use in macroeconomic analysis. Special attention is paid to the application of SAM in evaluating exogenous impacts, including multiplier effects, arising in all spheres of the national economy at governing decision-making and implementation of economic policy projects.The paper reviews aggregated social accounting matrices for the Russian Federation for the year 2020 that were compiled according to the SNA methodology and based on the G. Pyatt and A. Roe modified model. The author proposes the scheme of accounts partial trans- formation enhancing the reflection of direct income flows between institutional sectors. The properties of SAM as a static economic impact evaluation model are reviewed, and for illustration purposes, results of experimental computation of the effect of changed demand from the Rest of the World are considered.Analysis of areas of SAM application and its development as a tool for macroeconomic research highlights the importance of development methods of a detailed representation of the structure of household incomes and expenditures in social accounting matrices. It will foster solutions to poverty, inequality and connected social problems. It is noted that, with increased attention to the social aspects of macroeconomic accounting, SAM can become a major tool for measuring well-being and household income formation and distribution processes in macroeconomic statistics.