Modelling a New Sector: Reformulation of a Social Accounting Matrix for Multiplier Analysis
نویسنده
چکیده
This document describes in detail how reformulation to a Social Accounting Matrix (SAM) can be made in order to analyze the multiplier effects of a new sector. A different input composition, or technology, of the sector makes a conventional analysis of final-demand injections on existing sectors invalid. We show that the reformulation—so-called hypothetical integration—is an efficient way to incorporate the difference into the SAM, rather than costly full-scale rebalancing. We apply this method to the case of the Expanded Public Works Programme in South Africa, and show that the proposed approach effectively represents the labor intensity requirement of the program and a new-factor income distribution.
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