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The Social Accounting Matrix

In: Textbook of Computable General Equilibrium Modelling

Author

Listed:
  • Nobuhiro Hosoe
  • Kenji Gasawa
  • Hideo Hashimoto

Abstract

In the ‘household utility maximization model’ presented in the last chapter, we used values of coefficients for the utility function and for the factor endowments, assumed on an a priori basis. However, to develop an empirical CGE model, various coefficients and exogenous variables of the model based on real data must be estimated. The estimation process consists of two steps. First, we collect data of the base year and construct a comprehensive and consistent macroeconomic database, called a social accounting matrix (SAM). Next, by using the SAM, we estimate the coefficients and exogenous variables of the model. The estimation method of the latter step is called ‘calibration’. This chapter explains first the structure of a SAM, then how to construct a SAM. The calibration procedure is explained in Chapter 5.

Suggested Citation

  • Nobuhiro Hosoe & Kenji Gasawa & Hideo Hashimoto, 2010. "The Social Accounting Matrix," Palgrave Macmillan Books, in: Textbook of Computable General Equilibrium Modelling, chapter 4, pages 41-60, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-0-230-28165-3_4
    DOI: 10.1057/9780230281653_4
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