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

3.2. Evaluation with changes in household income
a) Effects of changes in household current income

In keeping with what was seen before, the items that can be changed in household current
receipts (the items in row 1 of the X matrix, presented in Table 4 or cells (1,2), (1,3), (1,4)
and (1,13), of the SAMs (in the Appendixes, see also the description of the cell contents) are:
1. social benefits other than social transfers in kind from non-financial corporations,
government, financial corporations, non-profit institutions serving households and the rest
of the world;

2. social transfers in kind from government and non-profit institutions serving households;

3. non-life insurance claims from financial corporations and the rest of the world;

4. miscellaneous current transfers from non-financial corporations, government and the rest
of the world;

Average expenditure propensities show that households spent a unit of their current
receipts as follows (column 1 of An and Al matrices):

1995

- Current transfers within households, to
government, other institutions and the rest of
the world............................. 0.15

Therefore, three quarters or more of a unit of household current receipts go towards final
consumption. Its relative share increased from 1995 to 1999, recording a slight decrease in
2000, but nonetheless always changing by the same amount as the decrease (increase in 2000)
in gross savings. The current transfers, within households, to government, other institutions
and the rest of the world, remained unaltered in the expenditure structure of Portuguese
households in the period studied.

These values can be understood as reflecting the direct influence of a unitary change in the
(above-described) household current receipts, whereas the global influence is quantified by
the values of the accounting multipliers and their components, as shown in Tables 5, 6 and 7.

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