Distribution of aggregate income in Portugal from 1995 to 2000 within a SAM (Social Accounting Matrix) framework. Modeling the household sector

As the beginning of an ambitious project for studying income distribution and poverty in
Portugal, we will study the effects on aggregate household income and aggregate
investment/investment funds resulting from changes in their current and capital receipts.

The SAM will be modelled in keeping with this aim, for the six years of our series.

3. THE SAM MODELLING

3.1. Methodology

In keeping with the work of G. Pyatt and A. Roe (1977), G. Pyatt and J. Round (1985) and
J. Defourny and E. Thorbecke (1984), the base methodology of the multipliers and their
decomposition will be used, considering the current and capital accounts of households, as
well as the production accounts, as endogenous.

Table 4. SAM in endogenous and exogenous accounts

Expenditures

Key:

- Endogenous accounts in the Portuguese SAMs, see the Appendixes (number of the
accounts in brackets): current and capital accounts of households (1 and 5); factors of
production (9 and 10); activities (11) and products (12).

- Exogenous accounts in the Portuguese SAMs: current and capital accounts of enterprises
or non-financial corporations (2 and 6), government (3 and 7), and other institutions or
financial corporations and non-profit institutions serving households (4 and 8); the rest of
the world (13); and errors and omissions (14).

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