Better policy analysis with better data. Constructing a Social Accounting Matrix from the European System of National Accounts.

Outline 1: The nominal flows between the SAM accounts

In Outline 1, the smaller circle represents the (domestic) economy and the bigger one the world.
With the direction of the arrows representing the direction of the nominal flows, within the smaller
circle we have all the transactions within the domestic economy, with the transactions between this
and the rest of the world being represented by the arrows that cut over its boundaries.

This outline helps us to understand how important is the study of the direct and induced effects of
any change in any flow in the whole economy - and the SAM-based modelling provides this.

The correspondence shown between the accounts and transactions of the SAM and the NAM makes
it clear that the SNA can be considered as the basic source of information for the construction of the
SAM. On the other hand, once the SNA transactions have been identified within each SAM/NAM
transaction, which can be considered as a grand total (SNA 93, Prg. 20.13), every process of
disaggregation (not only from the SNA, but also from other occasional sources) will be made easier
without losing the consistency of the whole system. In this case, the transactions or cells of the
matrices that have been referred to would be transformed into submatrices, in which the sum of all
their cells is equal to the first figure. Therefore, within this framework, a matrix could refer to the

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