Linear Aggregation In The Social Accounting Matrix Framework
In economic literature, information deficiencies and computational complexities have traditionally been solved through the aggregation of agents and institutions. In inputoutput modelling, researchers have been interested in the aggregation problem since the beginning of 1950s. Extending the conventional input-output aggregation approach to the social accounting matrix (SAM) models may help to identify the effects caused by the information problems and data deficiencies that usually appear in the SAM framework. This paper develops the theory of aggregation and applies it to the social accounting matrix model of multipliers. First, we define the concept of linear aggregation in a SAM database context. Second, we define the aggregated partitioned matrices of multipliers which are characteristic of the SAM approach. Third, we extend the analysis to other related concepts, such as aggregation bias and consistency in aggregation. Finally, we provide an illustrative example that shows the effects of aggregating a social accounting matrix model.
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- Pyatt, Graham, 1988. "A SAM approach to modeling," Journal of Policy Modeling, Elsevier, vol. 10(3), pages 327-352.
- E Dietzenbacher & A R Hoen, 1999. "Double deflation and aggregation," Environment and Planning A, Pion Ltd, London, vol. 31(9), pages 1695-1704, September.
- A T Murray, 1998. "Minimizing aggregation error in input - output models," Environment and Planning A, Pion Ltd, London, vol. 30(6), pages 1125-1128, June.
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