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Income Distribution in a Regional Economy: A SAM Model

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Abstract

Social accounting matrices (SAM) are a numerical scheme of the circular flow. The SAM-based multipliers can be used to determine the changes in the relative income of the 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 different components in the overall process of income distribution among the agents of an economy. The proposed approach pays special attention to the role of the government in the process of income distribution.

Suggested Citation

  • Maria Llop & Antonio Manresa, 2003. "Income Distribution in a Regional Economy: A SAM Model," Economic Working Papers at Centro de Estudios Andaluces E2003/03, Centro de Estudios Andaluces.
  • Handle: RePEc:cea:doctra:e2003_03
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    References listed on IDEAS

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    1. Roland-Holst, David W & Sancho, Ferran, 1992. "Relative Income Determination in the United States: A Social Accounting Perspective," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 38(3), pages 311-327, September.
    2. Cohen, S. I. & Tuyl, J. M. C., 1991. "Growth and equity effects of changing demographic structures in the Netherlands : Simulations within a social accounting matrix," Economic Modelling, Elsevier, vol. 8(1), pages 3-15, January.
    3. Pyatt, F Graham & Round, Jeffery I, 1979. "Accounting and Fixed Price Multipliers in a Social Accounting Matrix Framework," Economic Journal, Royal Economic Society, vol. 89(356), pages 850-873, December.
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    Cited by:

    1. Adelar Fochezatto, 2011. "Estrutura da Demanda Final e Distribuição de Renda no Brasil: Uma Abordagem Multissetorial Utilizando uma Matriz de Contabilidade Social," Economia, ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of Graduate Programs in Economics], vol. 12(1), pages 111-130.
    2. De Miguel Vélez, F.J. & Manresa Sánchez, A., 2004. "Modelos SAM lineales y distribución de renta: una aplicación para la economía extremeña," Estudios de Economía Aplicada, Estudios de Economía Aplicada, vol. 22, pages 1-22, Diciembre.
    3. Antonio Morales & Pablo Brañas Garza, 2003. "Computational Errors in Guessing Games1," Economic Working Papers at Centro de Estudios Andaluces E2003/11, Centro de Estudios Andaluces.
    4. Saari, M. Yusof & Dietzenbacher, Erik & Los, Bart, 2014. "Production interdependencies and poverty reduction across ethnic groups in Malaysia," Economic Modelling, Elsevier, vol. 42(C), pages 146-158.
    5. Llop, Maria, 2013. "Water reallocation in the input–output model," Ecological Economics, Elsevier, vol. 86(C), pages 21-27.
    6. repec:ebl:ecbull:v:15:y:2007:i:17:p:1-14 is not listed on IDEAS
    7. Francisco Javier De Miguel & Jesus Perez-Mayo, 2004. "Measuring inequality in a region: a SAM approach," ERSA conference papers ersa04p237, European Regional Science Association.
    8. Francisco Javier de Miguel Velez & Jesus Perez-Mayo, 2006. "Linear SAM models for inequality changes analysis: an application to the Extremadurian economy," Applied Economics, Taylor & Francis Journals, vol. 38(20), pages 2393-2403.
    9. Sanjaya Acharya, 2007. "Flow Structure in Nepal and the Benefit to the Poor," Economics Bulletin, AccessEcon, vol. 15(17), pages 1-14.
    10. Saari, M. Yusof & Dietzenbacher, Erik & Los, Bart, 2016. "The impacts of petroleum price fluctuations on income distribution across ethnic groups in Malaysia," Ecological Economics, Elsevier, vol. 130(C), pages 25-36.

    More about this item

    Keywords

    relative income; distributional incidence; government redistribution.;

    JEL classification:

    • C63 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computational Techniques
    • D59 - Microeconomics - - General Equilibrium and Disequilibrium - - - Other
    • H59 - Public Economics - - National Government Expenditures and Related Policies - - - Other

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