Social Accounting Matrices Research Articles

Small Community Level Social Accounting Matrices and their Application to Determining Marine Resource Dependency

Abstract Social accounting matrices (SAMs) are constructed for two communities on the West Coast which have previously been classified as natural resource dependent; Westport, Washington and Newport, Oregon. The SAMs are constructed in an innovative way that allows for the economic dependency and utilization of natural resources, especially marine resources, to be examined in detail. The SAM utilizes data from a mix of publically available secondary sources and data collected directly from local governments. The SAMs are then subjected to an economic base analysis to develop indices of economic dependence. The results of this study indicate that while fishing and fish processing are no longer a major source of gross measures of output, employment, wages, or gross regional product (GRP) in any state or even county on the West Coast; from an economic export income perspective cities such as Westport, Washington are heavily dependent on these industries for their economic base. JEL Classification Codes: R11,...

Small Community Level Social Accounting Matrices and their Application to Determining Marine Resource Dependency

Social accounting matrices (SAMs) are constructed for two communities on the West Coast which have previously been classified as natural resource dependent; Westport, Washington and Newport, Oregon. The SAMs are constructed in an innovative way that allows for the economic dependency and utilization of natural resources, especially marine resources, to be examined in detail. The SAM utilizes data from a mix ofpublically available secondary sources and data collected directly from local governments. The SAMs are then subjected to an economic base analysis to develop indices of economic dependence. The results of this study indicate that while fishing and fish processing are no longer a major source of gross measures of output, employment, wages, or gross regional product (GRP) in any state or even county on the West Coast; from an economic export income perspective cities such as Westport, Washington are heavily dependent on these industries for their economic base.

Trade Liberalization in Latin America and Eastern Europe: the Cases of Ecuador and Slovenia

We analyze the potential effects of ongoing trade reforms: Ecuador signing an FTA with the US, and Slovenia joining the EU. We construct a static Applied General Equilibrium Model and perform numerical experiments eliminating all import tariffs. Based on Input-Output tables, we construct Social Accounting Matrices for each country for calibration. Additional experiments are performed: sensitivity analyses on the trade elasticities, partial liberalizations, fiscal impacts of eliminating tariff revenues, and an alternative Slovenian liberalization framework. We find that both countries benefit from these reforms, with import prices falling and exports rising. However, different arrangements of trade liberalization have different implications on trade and welfare patterns.• JEL Classification: F14, F15

Tourism Satellite Accounts and Impact Assessments: Some Considerations

The agreement between international agencies that Tourism Satellite Accounts (TSA) are the most appropriate way to measure the economic contribution of tourism has led to an explosion in the number of countries (and regions) developing such accounts. In reliably reconciling visitor supply and demand, TSAs offer improved information for tourism policy development and economic impact assessments, both of which are important in guiding resources and support for new tourism infrastructure and individual events. There are, however, a number of conceptual and structural issues that limit the usefulness of the TSA for economic modeling purposes. This article suggests that while the collection and manipulation of information that supports the TSA will aid impact and policy assessment, a further reengineering of the TSA framework is necessary to lever the full benefits for such studies. The TSA is found to be ideally used as a basis for complementary modeling techniques, including that of Computable General Equilibrium and Social Accounting Matrices.

The effects of European funds on a regional economy: an applied general equilibrium analysis

In this work we conduct an impact analysis of European Structural Funds to assess their effect on output, prices and consumers’ income on the European region of Andalusia, in the south of Spain. For this purpose we present an Applied General Equilibrium Model for Andalusia (AGEM_A) and proceed to compare the reception of regional funds scenario to a hypothetical situation where this financial support has been removed. The AGEM_A has been numerically implemented by supplementing the statistical information provided by the Social Accounting Matrices for Andalusia corresponding to 1990, 1995 and 1999, with data included in the three Community Support Frameworks approved by the European Commission.

Modelling economic circuit flows in a social accounting matrix framework. An application to Portugal

Aggregated Social Accounting Matrices (SAMs) will be built for the Portuguese economy in 1997, 1998 and 1999, based on the country's national accounts statistics. The SAMs will be shown as a working instrument for quantifying the flows in the economic circuit and for simulating the effects resulting from changes in such flows. The economic flows associated with the government subsectors will be emphasized, whilst accounting and fixed-price multipliers will be calculated to facilitate the study of the effects resulting from changes in the government's expenditure, which will also be subjected to a test on their veracity.

Small towns as ‘sub-poles’ in English rural development: Investigating rural–urban linkages using sub-regional social accounting matrices

This paper uses spatial economic data from four small English towns to measure the strength of economic integration between town and hinterland and to estimate the magnitude of town–hinterland spill-over effects. Following estimation of local integration indicators and inter-locale flows, sub-regional social accounting matrices (SAMs) are developed to estimate the strength of local employment and output multipliers for various economic sectors. The potential value of a town as a ‘sub-pole’ in local economic development is shown to be dependent on structural differences in the local economy, such as the particular mix of firms within towns. Although the multipliers are generally small, indicating a low level of local linkages, some sectors, particularly financial services and banking, show consistently higher multipliers for both output and employment.

Estimating a socially optimal water price for irrigation versus an environmentally optimal water price through the use of Geographical Information Systems and Social Accounting Matrices

This article develops a method for establishing water prices and their effects in order to provide policy makers an environmentally and socially optimal range of regional prices for irrigation water. Two prices are determined. The “environmentally optimal price” of water is defined as the one that internalizes the environmental costs generated by agricultural consumption. The “social optimally price” of water is defined as the one that maximizes levies on water for agriculture without affecting the regional economy. The environmentally optimal price is calculated with an economic model built over a Geographical Information System (GIS) that allows the economic quantification and valuation of the environmental cost of water in different basins. The optimal price is calculated with a demand curve for irrigation water introduced into a Social Accounting Matrix (SAM) to observe if the regional economy can accept higher prices without affecting the regional GDP. Potential water prices are established, ranging from prices that minimize the negative impact in the regional economy to those that totally internalize the environmental cost of water.

Linear SAM models for inequality changes analysis: an application to the Extremadurian economy

Social accounting matrices are adequate databases for the economic modelling. These matrices emphasize the role of households in the economy, and so, they usually disaggregate the household sector into several groups. This disaggregation allows social accounting matrices to be used for diverse income distribution analysis. The objective of this work is to use the linear SAM models to study how inequality is modified by several exogenous injections of income. The set of multipliers and indicators presented is applied to the economy of Extremadura – a region situated in the southwest of Spain. In particular, together with the accounting multipliers, two redistributed income matrices are presented to show how changes in final demand and in income transfers cause opposite effects in inequality. For contrasting these results, Gini and Theil indices are also used. Finally, a major reduction in both would result from an appropriate re-allocation of transfers.

Technology and technical change in the MIT EPPA model

Potential technology change has a strong influence on projections of greenhouse gas emissions and costs of control, and computable general equilibrium (CGE) models are a common device for studying these phenomena. Using the MIT Emissions Prediction and Policy Analysis (EPPA) model as an example, two ways of representing technology in these models are discussed: the sector-level description of production possibilities founded on social accounting matrices and elasticity estimates, and sub-models of specific supply or end-use devices based on engineering-process data. A distinction is made between exogenous and endogenous technical change, and it is shown how, because of model structure and the origin of key parameters, such models naturally include shifts in production process that reflect some degree of endogenous technical change. As a result, the introduction of explicit endogenous relations should be approached with caution, to avoid double counting.

A method for constructing commodity by industry flow matrices

This paper presents theory and methods used to construct an interregional commodity by industry flow matrix for the United States. The interregional flow matrix method involves the construction of single-state (and DC) social accounting matrices (SAMs) using data derived from IMPLAN. Once complete, the interregional flows connecting states are estimated using a method based on the commodity flow survey data published by the Bureau of Transportation Statistics. The estimated interregional SAM is then adjusted to insure the integrity of intra-regional and system-wide accounts. The procedures have been designed with ease of replicability as a goal so that updates and extensions of the database can be generated efficiently and at low cost as new data are released. The resulting US interregional framework describes flows within and among the 51 regions. The method is flexible and will provide a valuable database for a broad range of analyses on regions, interregional relationships, and policy.

A Review of Regional Economic Models for Fisheries Management in the U.S.

In 1986, Andrews and Rossi reviewed input-output (IO) studies of U.S. fisheries. Since then, many more fisheries studies have appeared using IO and other types of regional economic models, such as Fishery Economic Assessment Models, Social Accounting Matrices, and Computable General Equilibrium models. However, to our knowledge no updated summary of these studies or models has appeared since 1986. This paper attempts to fill this gap by briefly reviewing the types of regional economic models that have been applied to fisheries, reviewing studies using these models that have been conducted for U.S. fisheries, and identifying data and modeling issues associated with regional economic analysis of fisheries in the U.S. The authors conclude that although economic impact analysis of fisheries policy is required under federal law, development of more representative regional economic models for this purpose is not likely to be forthcoming without increased information obtained through some type of comprehensive d...

地域社会会計行列の作成と生産・分配構造の乗数分析

地域社会会計行列の作成と生産・分配構造の乗数分析

An Experiment with Cross-Entropy Minimization: Estimation Interregional Trade Flows in Quebec

In this paper, we report on an experimental application of Kullback-Leibler cross-entropy minimization to estimate trade flows between regions. Interregional trade flows were estimated for 31 categories of goods and services, between three regions of the Province of Quebec in 1992: the Montreal and Quebec metropolitain areas, and the Rest-of-Quebec. With this bayesian-style method, we were able to obtain interregional flows that respect the marginal totals taken from pre-existing regional social accounting matrices, using transportation flow data as a priori distributions.

MULTIPLE LABOR GROUPS AND THEIR EFFECTS ON SMALL CITY AND TOWN SAMS AND CGE MODELS

This paper extends Schwarm and Cutler (2003) by incorporating three labor groups while using their methods to source data and provide an organizational framework that allows effective and straightforward creation of social accounting matrices (SAMs) and regional computable general equilibrium (CGE) models. While CGE models typically describe relatively large geographical areas and are therefore not able to capture the uniqueness of individual cities or towns within the region, our model allows simulations of small cities and towns that highlight regional similarities or differences. The differing effects of both an increase in manufacturing and a change in the sales tax are examined to demonstrate the insights and regional characteristics that such methods allow a researcher to obtain.

Spatial accounting methods and the construction of spatial social accounting matrices

The paper examines modifications to Regional Accounts used to construct regional and interregional Social Accounting Matrices (SAMs). It is argued that as the size of the basic areal unit used in studies declines, more traditional accounting approaches are no longer satisfactory. A three-dimensional spatial approach (termed two-by-two-by-two) to the identification of fundamental dimensions (commodity and factor market; geographical; and social accounts) has been developed in contrast to the more traditional non-spatial approach (termed two-by-two). This involves a novel approach using the geographical concepts of place of production for production activities, place of residence for institutions, marketplace for commodities and marketplace for factors. The use of these concepts permits accounting balances to be calculated at the spatial level. The theoretical basis of the spatial regional accounting model is presented and an example of the construction of a Danish Interregional SAM (SAM-K) is examined. Particular attention is given to data requirements, showing that these are much more modest than generally assumed.

General equilibrium modelling in South Africa: What the future holds

This paper provides an overview of the main research contributions of the past decade using general equilibrium models to analyse agricultural issues in South Africa. The methodological developments since the change to democracy ten years ago are viewed in the context of developments in this area of research carried out internationally. It will be shown in this paper that the modelling and computing techniques have vastly improved during the past decade, both in an ongoing attempt to refine existing models, and in an attempt to extend the modelling framework to make provision for issues that cannot be sufficiently captured in the standard comparative static models. These extensions include dynamic modelling, global modelling, environmental modelling and micro simulation. The paper highlights the non-trivial data requirements of this type of modelling. The national statistical agency, Statistics South Africa, supports general equilibrium modellers by their development of input-output tables, social accounting matrices and, more recently, supply and use tables. This decade has therefore witnessed an improvement in the data for the construction of national level social accounting matrices. Requirements for provincial level data have however not been met sufficiently, posing huge challenges for provincial and regional modelling. The lack of primary data has however stimulated development of advanced data estimation techniques that can be applied to overcome this data challenge. Application of general equilibrium techniques to analyse agricultural issues in South Africa still remains limited and substantial support and training of researcher is still needed to expand domestic capacity in this field of research.

Regional social accounting matrices for structural policy analysis in lagging EU

Summary The significant diversity of EU rural areas in terms of population, natural resourceendowments and socio-economic structures is likely to result in different impacts ofpolicy changes and economic developments. This paper attempts to reveal how EUstructural policy during 1989–1993 affected remote rural areas (with mixed andagriculturally dependent economic structures, respectively) in Northern andSouthern Europe, and to quantify the impacts on local growth generation throughthe use of a general equilibrium model. Finally, the impacts of three structuralpolicy scenarios (including Agenda 2000) on the rural economies studied areestimated.Keywords: structural policy, social accounting matrix, Greece, Finland, ScotlandJEL classification: Q18, R11, R58 Job No. 10298 MFK-Mendip Page: 149 of 178 Date: 23/7/04 Time: 7:27am Job ID: ERAE Op: mford j:/3b2/Oxford University Press/Journals/Erae/ERAE 2004-2/jbh011.3d European Review of Agricultural Economics vol. 31 no. 2 # Oxford University Press and Foundation for theEuropean Review of Agricultural Economics 2004; all rights reservedEuropean Review of Agricultural Economics Vol 31 (2) (2004) pp. 149–178

Income distribution in a regional economy: a SAM model

Social Accounting Matrices (SAM) are a numerical scheme of the circular flow of income. SAM-based multipliers can be used to determine changes in the relative income of economic agents. In this paper we investigate the process of income distribution in the Catalan economy, using the linear model of SAM multipliers. We also present an additive decomposition of the distributional incidence measurement provided by Roland-Holst and Sancho (1992). With this decomposition we can identify the various components in the overall process of income distribution among the agents of an economy. The approach pays special attention to the role of government in the process of income distribution.

Sensitivity of CGE Simulation Results to Competing SAM Updates

Recent research shows a renewed interest in the properties of non-survey updates of input-output tables and social accounting matrices (SAM). Along with the scaling RAS method, new procedures related to entropy minimization and other metrics have been examined. Whether they will replace or complement the RAS method is an open question. The performance of the updating procedures has been tested with proximity measures to a reference input-output table or SAM, but we look at the performance of three updating mechanisms by comparing the simulation results from adopting alternative databases for the calibration of a reference CGE model.