Hypothetical Integration in a Social Accounting Matrix and Fixed-price Multiplier Analysis
AbstractThis study proposes a simple modification to a Social Accounting Matrix (SAM) 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. Author Kijong Kim shows that the modification--so-called hypothetical integration--is an efficient way to incorporate the difference into the SAM, rather than costly full-scale rebalancing. He applies this method to the case of the Expanded Public Works Programme in South Africa, and demonstrates that the proposed approach effectively represents the labor intensity requirement of the program and a new-factor income distribution.
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Bibliographic InfoPaper provided by Levy Economics Institute, The in its series Economics Working Paper Archive with number wp_552.
Date of creation: Dec 2008
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