Social Accounting Matrix Model Research Articles

The recovery and resilience plan on the long-term care system. Towards a deinstitutionalization?

After the crisis caused by Covid-19, among other socioeconomic problems, the fragility of the organizations that make up the Spanish Long-Term Care System was revealed. These events prompted the Recovery and Resilience Plan (RRP). The aim of this study is to estimate the socioeconomic impact on Long-Term Care (LTC) of the investment delivered by the RRP. In addition, to fulfil our main aim, a secondary and necessary aim was to calculate the most current social accounting matrix (SAM) of the Spanish economy. We analyse the components of the demand linked to the RRP investment allocated to LTC, and subsequently, based on Input-Output methodology, we calculate a social accounting matrix (SAM) of the Spanish economy to estimate the overall economic return. The results obtained using the SAM model proposed herein evidence the multiplier effect of the RRP invested in LTC. Every euro allocated to the RRP generates 4 euros in income for Households, Firms and the External Sector, 3.4 euros in industrial output, and returns 0.6 euros in taxes and social contributions to the Government. This also entails creating 26,410 direct and indirect jobs as well as 10,059 induced ones. Given the severe recession scenario triggered by the consequences of COVID-19, the results of this study highlight the significant multiplier effect that RRP investment may generate to alleviate the downturn in the Spanish economy and, more specifically, in the Spanish LTC System.

CONSEQUENCES OF THE COVID-19 PANDEMIC IN THE EUROPEAN UNION FROM THE PERSPECTIVE OF GENERAL GOVERNMENT FINANCES – AN ANALYSIS BASED ON THE SOCIAL ACCOUNTING MATRI

The aim of the paper is to assess the effects of the COVID-19 pandemic from the perspective of income circulation processes in the economies of the European Union. The empirical study is based on statistical data compiled according to ESA2010 standards, published by the European Commission in the Eurostat database. The fundamental quantitative relationships between entities grouped into institutional sectors have been synthetically presented in the form of a social accounting matrix (SAM). The analyses of simple macroeconomic indicators show the growing importance of the government sector due to the pandemic. This is evidenced by the growing involvement of this sector in consumption, accumulation and income redistribution between institutional sectors.Simulation analyses based on the SAM model determine to what extent the contribution of the government sector to GDP results directly through feedback loops from final demand and to what extent from current and capital transfers.

Economic Sectors Impact Household Income in Vietnam: A Structural Path Analysis

Despite the remarkable achievements in poverty reduction, income inequality in Vietnam still tends to increase, consequently having negative impacts on the sustainable growth of the country. The goals of this research are to identify and measure the impact of propagation channels of economic sectors on the income of the household groups, which is of great importance to poverty reduction efforts in Vietnam. The study aims to unravel the critical supply chain paths that drive changes in household income. To this end, the structural path analysis methodology is used based on the 2016 Vietnam Social Accounting Matrix model, which has not been extensively studied in Vietnam. Compared with previous studies, this research was conducted at the national level instead of the regional level and detailed the factors involved in income distribution such as economic sectors, labour, and household groups. The analysis finds 513 higher-order paths of 25 sectors that lead to an income increase for the household groups. When economic sectors expand under policy changes, household income improvements are mainly affected by labour skill, capital, and the magnitude of inter-industry linkages. It is noteworthy that high-skilled labour has a significant impact on the income of urban households, while the income of rural households is considerably affected by the capital. The analysis also demonstrates 32 selected paths having the greatest influence on household income. The importance of forestry, wood and wood products, fisheries, coal, crude oil and natural gas, footwear, distribution of electricity, gas, water, and utilities, and retail and wholesale for poverty alleviation is underlined for their distributional impact. Based on the research findings, relevant policy implications are also recommended.

Description of the Application of the I-O Method Approach in the Defense Sector through Modification of the Social Accounting Matrix (SAM) Model

This study applies a descriptive approach, the approach in question aims to provide an explanation or description of the application of the I-O method in the defense sector through the modification of the Social Accounting Matrix (SAM) Model, while the type of research applied in this study is descriptive qualitative research, namely interpreting or describing about everything that exists and is related, this interpretation relates to existing relationships or conditions, the process of an ongoing situation, effects or consequences that occur, opinions that are developing, or trends that are growing. In the Input–Output Method, the basic table is a transaction table consisting of: input coefficient table (coefficient matrix), multiplier table, attractiveness index table and driving force index as well as supporting tables and other analysis tables depending on the breadth of the field to be discussed. This study concludes that the I-O model is applied to the defense sector by developing the SAM (Social Accounting Matrix) model. This model is an extension of the I-O model which includes economic sub-sectors or more detailed sub-sectors.

Impact of COVID-19 on Saudi Arabia's economy: evidence from macro-micro modelling

Purpose Even with the Saudi Arabian Government's discretionary measures to mitigate the spread of the coronavirus disease 2019 (COVID-19), the economic sectors were not spared from the damage. Thus, the paper aims to use a computable general equilibrium (CGE) model to evaluate the impact of COVID-19 on the Kingdom of Saudi Arabia's (KSA) economy, with a special focus on small and medium enterprises (SMEs) and production. These influence the level of poverty. Design/methodology/approach The paper adopted the social accounting matrix (SAM) for Saudi Arabia built in 2021 by Imtithal Althumairi from Saudi Arabia's 2017 SAM. The model represents a snapshot of the economy and different flows that exist within the tasks and institutions. Two simulations (mild and severe) were conducted because of the focus on the distributional outcomes. Findings Decrease in job creation and economic growth were significant evidence from the study's findings. Findings show that more families hit below the poverty line because the negative impacts of the pandemic have shifted the income allocation curve. Findings show that the weakest of the poor are mitigated by government social grants during the pandemic. Research limitations/implications The paper is restricted to the relevant literature relating to the impact of COVID-19 on Saudi Arabia's economy and evaluated using the SAM model. Moreover, the COVID-19 is still an ongoing scenario; thus, the model should be updated as data utilised for the operationalisation are made available. Practical implications The information from the suggested model can be suitable to measure the degree of the harm, and thus, the likely extent of the desirable policy feedback. Also, the model can be updated, as data are made available and formulated policies based on the updated data implemented by the policymakers. Originality/value Apart from the recovery planning of SMEs during the pandemic, the paper intends to stir up Saudi Arabia's policymakers through the macro-micro model to recovery planning and resilience of the economy with emphasis on mitigating unemployment.

Community-level economic impacts of a change in TAC for Alaska fisheries: A multi-regional framework assessment

A marine heatwave caused the total biomass of Gulf of Alaska (GOA) Pacific cod to plummet by 67% from 2015 to 2018. Based on the results from GOA Pacific cod stock assessment model, the North Pacific Fishery Management Council cut the GOA Pacific cod total allowable catch (TAC) by 80% in 2018. This study uses a 10-region multi-regional social accounting matrix model to compute the economic impacts of the cod fishery disaster on the six borough and census areas (BCAs) in Southwest Alaska plus effects on the other four regions. We consider both the negative effects of the reduction in the cod harvest and the offsetting effects from an observed increase in the price of the fish to calculate the “net” economic impacts. This study found that the offsetting effects from the price increase are significant; the reduction in total regional output in the rest of the United States is 15% less severe if effects of the price changes are taken into account. Furthermore, the region suffering the largest impacts on total seafood industry output (Aleutians East Borough) from the reduced TAC is not necessarily the region where the largest total regional impact occurs (rest of the U.S.).

Key sector analysis for a subnational region with leakages

Key sector analyses have a long and rich history. However, almost all the previous analyses were conducted only within an input–output (IO) framework for a national economy. The present study (1) performs the analysis for a subnational (or regional) economy suffering severe leakages of industries’ revenues due to a large amount of imports and a large fraction of factor income earned by non-residents, and (2) extends the previous IO-based analyses to an analysis within a social accounting matrix (SAM) model and, further, to a multi-regional SAM (MRSAM) model. Comparing the results from the three alternative models shows that the key sectors identified with the alternative models are considerably different. This finding points to the necessity of using SAM-based models for an accurate key sector analysis and offers valuable implications for regional policymakers whose main interest is identifying the industries that they target for the economic development of their regions.

Empirical Examination of Intersectoral Linkages Between Tourism and Regional Economy by Using the Social Accounting Matrix

Purpose: The main objectives of this study are to analyze the role of the tourism sector as measured by multiplier effects and linkages in the economy’s output, employment, and income distribution. Design/methodology/approach: The Social Accounting Matrix model was utilized by using the methods of Linkage Analysis, Multiplier Analysis, Multiplier Decomposition, Structural Path Analysis (SPA) and simulation analysis. Findings: The results show that the tourism sector contributes greater portion to the economic output, than other economic sectors in Bali. It also generates more equal income distribution and employment. However, the simulation shows that the tourism sector has not focused on increasing the income of the lower classes in rural areas. Practical implications: This study is practically useful for policy makers and entrepreneurs in the tourism sector to expand the tourism base in rural areas by actively involving lower economic groups as labor and supplier partners. Originality/value: This study originally investigated the linkages between agriculture and tourism from various economic perspectives of output, income distribution and employment.

Socio-economic impact of a nuclear power plant: Almaraz (Spain)

ABSTRACTAn analysis is made of the socio-economic impact in a region in which a nuclear plant is decommissioned. The average age of nuclear power plants around the world is high, so that many are close to the end of their useful life. The issue of this impact will be important in a few years for various reasons, especially because those plants tend to be drivers of the economic activity in the areas in which they are located. The focus of this communication is on these socio-economic effects. Methodologically, socio-economic analysis uses a linear Social Accounting Matrix model that improves traditional Input–Output approaches by covering the induced effects generated from the receptors of income out to other sectors of the economy. The procedure is applied to an empirical analysis of the Almaraz Nuclear Power Plant in Spain. This was purposely chosen as sharing many of the general characteristics of nuclear plants around the world. If the plant is closed down, our results suggest that there will be a clear negative impact in terms of employment and added value generation.

Studying the Income Effects of Cash Subsidy Payment by a Social Accounting Matrix and the Fixed Price Multiplier Approach

The main aim of this study is to measure direct and indirect income effects of cash subsidies on producing activities, factors of production and institutions’ incomes with the focus on rural and urban household income. An assessment is conducted in the social accounting matrix model using the fixed price multiplier matrix in which the relationship between income injection and income distribution policies is taken into account. Therefore, the 2006 social accounting matrix (prepared by Majlis Research Center in 2012), the population and housing census of Iran and subsidies for a fixed monthly payment are employed as the main data resources. The results show that the income impact of this policy on urban households is stronger than that on rural households. Moreover, service, agriculture, home appliances, food and retail sail sectors get the greatest influence of the policy.

Tourism’s potential to benefit the poor

The study examines the distributional effects of tourism expansion applying a social accounting matrix model to the case of Ecuador. Specifically the study examines what share of tourism expansion benefits poor people. The study finds that tourism has large multiplier effects on the Ecuadorian economy and has the potential for substantial benefits to the poor. The study also found that distributional effects of tourism development are spread across all household incomes in both urban and rural areas benefiting the lowest and low households the most. Tourism has the potential of reducing inequality and is pro-poor in the case of Ecuador. Benefits to the poor seem to hinge on how and where tourists spend their money.

Socio-Economic Implications of Drought in the Agricultural Sector and the State Economy

In 2011, the most severe drought in Texas history caused $7.62 billion in losses in the agricultural sector alone. This paper analyzes ripple effects of the 2011 drought in Texas agriculture on the entire state economy retrospectively in an effort to foster discussion on targeted mitigation measures in the long term. By using an Input-Output and social accounting matrix model, direct effects on livestock, cotton, sorghum, wheat, corn, hay, and timber production, as well as indirect effects on other related sectors, and finally induced effects from changing consumers behavior have been estimated. According to the results, the 2011 drought caused economic losses of $16.9 billion in the entire Texas economy and increased the unemployment by around 166,895 people. The agricultural sector alone lost around 106,000 jobs. The cotton farming experienced 91% of revenue losses (as compared to 2010), while the livestock production lost 32% in revenue. The decreased production yields and limited market supply directly influence market prices for those products, which might create additional spillover effects on export and import quantities. The presented analysis can be helpful for designing policies to launch mitigation programs for drought events in the future.

Simulating Indonesian fuel subsidy reform: a social accounting matrix analysis

The debate over phasing out fuel subsidies in Indonesia is quite intense. Recent studies pointed out an unfair distribution of subsidies. Besides this, the burden of fuel subsidies to Indonesian government is expected to increasingly continue in parallel with rising fuel consumption as well as international oil prices. However, recent experiences indicated that phasing out the fuel subsidy could potentially result in adverse effects in the economy. Then, the need for comprehensive economy-wide analyses in order to reveal diverse impacts of these subsidies, has emerged. The main objective of this study is to estimate the impacts of fuel subsidies from the economic, social, and environmental perspective, and to propose policy options for a subsidy reform. For this purpose, a social accounting matrix model is employed to simulate the impact analysis. Scenarios including reallocation of subsidy to either other sectors (sectoral subsidy) or income groups (target subsidy) are simulated and the social, economic and environmental impacts of these scenarios are presented. The results show that reallocation of fuel subsidy to other sectors will be able to positively increase the overall economic development, while compromising environmental aspects. The direct reallocation of subsidy to the low income households, on the other hand, will slow down overall economic development but show a positive result for social welfare.

Comparing the aggregation bias in the input–output model and the social accounting matrix model

In economic literature, some information deficiencies and computational complexities have traditionally been solved through the aggregation of data. In input–output (IO) modelling, researchers have been interested in aggregation since the 1950s. Extending the conventional IO aggregation approach to the social accounting matrix (SAM) framework may help to identify the effects caused by the problems of information that usually appear in the linear SAM models. This article applies the theory of IO aggregation to the SAM model and presents a comparison of the IO aggregation bias and the SAM aggregation bias.

Calculating impacts of exogenous output changes: application of a social accounting matrix (SAM) model to Alaska fisheries

Some previous studies calculated backward linkage and forward linkage effects of exogenous change in output capacity using mixed endogenous–exogenous models within an input–output (IO) or social accounting matrix (SAM) framework. For calculating forward linkage effects, these studies used the supply-drive(Ghosh in Economica 25(1):58–64, 1958) approach. However, the Ghosh approach has been criticized based on its problematic theoretical interpretation. This study uses an Alaska SAM model to estimate the regional economic impacts of restricting catch of Pacific cod and Atka mackerel in the Aleutian Islands in order to protect Steller sea lions. This study overcomes the problem of calculating forward linkage effects in the previous studies by running the SAM model with (1) changes in output converted to final demand shocks and (2) regional purchase coefficients for all the directly impacted industries (fish harvesting and processing industries) set equal to zero. The impacts of the shift in harvest opportunities in response to the Steller sea lion protection measures are displayed in terms of changes in output, employment, value added, household income, and state and local government revenue.

Energy Intensities and Carbon Dioxide Emissions in a Social Accounting Matrix Model of the Andalusian Economy

SummaryThe aim of this article is to calculate energy intensity and carbon dioxide (CO2) emissions in Andalusia, the largest and most populated region of Spain. Energy intensities for five energy commodities used in production activities are calculated using a social accounting matrix (SAM) model with three alternative scenarios, each utilizing differing closure rules. More interestingly, by using 2005 data and updating the values of exogenous accounts, the article also provides estimates of CO2 emissions ten years out from the 1995 base year. Finally, counterfactual experiments are performed to quantify the overall reduction in direct energy coefficients that would have made it possible to maintain constant production‐sector emissions from 1995 to 2005. The results indicate that there is a strong interdependence among energy sectors and the most intensive energy users; they also indicate the importance of induced effects when factor accounts and private consumption are endogenous. The estimates obtained concerning CO2 emissions are close to official estimates, both from 1995 and 2005. The counterfactual experiments indicate that a 26.5% cut in the size of direct energy requirements would have made it possible to maintain constant emissions. They also indicate that efforts to curtail emissions should be focused on improving efficiency in coal extraction and combustion and oil refining.

An Analysis of the Possible Economic Effects of HIV/AIDS in Swaziland Using the SAM and CGE Models

This is a conceptual paper which was motivated by the fact that Swaziland does not have a Social Accounting Matrix (SAM) in place and as such there are many shocks that affect that country' economy but which cannot be analyzed effectively. Most notable of this is the economic effects of the HIV/AIDS scourge that is affecting that country of which it has been difficult to determine the effects it has had on the economy in an objective manner. This paper will highlight the usefulness of the SAM and Computable General Equilibrium (CGE) models in analyzing the possible economic effects of HIV/AIDS in Swaziland. The absence of a SAM for Swaziland means that empirical analysis of the effect of the disease on the economy could not be undertaken, but it is hoped that the arguments presented here will contribute to the use of these methods as tools for analyzing various shocks in an economy. The paper is divided into 4 parts. Part 1 is a brief introduction into the Swaziland economy, part 2 is a brief description of the SAM, description of CGE Modeling and a detailed application of the SAM data into the CGE modeling framework, part 3 introduces the HIV/AIDS situation in Swaziland and models its possible effects using a macroeconomic SAM and part 4 is the discussion and conclusion. The main aim of the paper then is to lay the basic framework to help small developing countries develop practical SAMs that will become an important tool in analyzing the performances of their economies.

The Economic Impact of Saltwater Sportfishing Harvest Restrictions in Alaska: An Empirical Analysis of Nonresident Anglers

AbstractSaltwater sportfishing is a popular activity for visitors to Alaska. In this paper, a stated‐preference model of saltwater sportfishing participation is used to generate estimates of the changes in participation resulting from changes in harvest limits for three primary recreational target species in Alaska saltwater fisheries: Pacific halibut Hippoglossus stenolepis, Chinook salmon Oncorhynchus tshawytscha, and coho salmon O. kisutch. These estimates are then used in a state‐level computable general equilibrium (CGE) model to generate estimates of the economic impacts of harvest policies. We find that the impacts of changes in nonresident anglers' expenditures are smaller than those from a social accounting matrix model and that many of the impacts from an increase in expenditures leak out of state owing to Alaska's heavy dependence on imports of goods and services from the rest of the United States. Moreover, changes to harvest limits appear to have a small effect on the Alaska economy, at least in comparison with the overall size of that economy.

Economic Contribution of Tourism in Kenya

As in many other developing countries, tourism is one of the key drivers of Kenya's socioeconomic development. At independence in 1963, Kenya depended mainly on its exports of agricultural products such as coffee and tea for foreign exchange. However, with the decline in world market prices of these primary products, the country has turned to tourism as an alternative. In spite of the growing importance of tourism as a key industry, little information is available on the holistic economic impacts and the pathways through which these impacts are affected in the Kenyan economy. Without information on how tourism as a complex industry is linked to the other sectors of the economy, policy makers will be at a loss on how to effectively stimulate its growth, develop capacity, and enhance its positive impacts. This research proposes to use data from the Kenya Social Accounting Matrix (SAM) 2001 to examine the impact of tourism on production, value added, and employment. From the complete SAM model, whose exogenous components include government, international trade, and saving-investment accounts, you need 9.63% of total production, 6.70% of employment, and 10.57% of value added to satisfy the export for other private services. These results indicate that the private services sector in general and tourism in particular is an important economic activity with potential to play an even bigger role in spurring output, incomes, and creating employment. The enhancement of the tourism sector's backward linkages with the extractive sectors, equipping manpower with skills required for better employment positions, increasing the share of local ownership in the service sector, and the diversification of tourism attractions would be helpful policies to leverage tourism's potential.

An Assessment of the Impact of Tourism in the Balearic Islands

According to the official Institute of Tourist Studies, the Balearic Islands, a Spanish region with just over one million inhabitants, received 9.6 million international arrivals in 2005 out of 55.8 million for the entire country. Although a rather impressive figure, it is 8.2% below the 10.5 million recorded in 1999, which might partially explain why the Balearic Islands has recorded the worst growth performance of all 17 autonomous Spanish regions since 2000. A look at the 1997 regional input–output table confirms the Balearic Islands as a service-oriented economy highly specialized in the production of services for tourists. The main purpose of this paper is to provide the first assessment of the impact of tourism in the Balearic Islands using input–output techniques and several alternative assumptions on endogeneity of final demand components. The paper also estimates, under the same assumptions, the effects on the economy of a 10% fall in tourist flows. Finally, the results are compared with those obtained with a social accounting matrix model.