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

European Union as a whole, it then possible being to work with SAMs that, in turn, could be
disaggregated at a regional level⁵, with all the usefulness that this could have for policy-making.

A possible starting point for this is given by Table 4, which uses an example for Portugal in 2002⁶
and works at a highly aggregated level from the integrated economic accounts, except for the
disaggregation undertaken for the rest of the world (from the rest of the world account).

Table 4. Aggregate Social Accounting Matrix for Portugal in 2002 (in millions of euros)

Sources: Portuguese National Accounts

Note: Due to the lack of data regarding the financial transactions divided by the EU (European

Union) and other countries, the division was made by using the structure of net borrowing,
which is part of the financial transactions from the rest of the world.

3. The SAM as a database for economic modelling

From the previous section, it "can readily be seen that" the SAM "incorporates all major
transactions within a socio-economic system" (Thorbecke, 2003). It consists of a data set of
interrelated subsystems that, on the one hand, provides an analytical picture of the circular flow or
the general equilibrium interactions of the market economy, studied in a particular accounting
period, and, on the other hand, serves as an instrument for assessing the effects of changes in the
particular nominal flows represented by the matrix (injections into and leakages from the system),
which might be the result of policy measures.

⁵ Although not yet in a SNA 93 framework, this issue was also dealt with by J. Round in his article “A SAM for
Europe: Problems and Perspectives” (Economic Systems Research, 3, 249-268, 1991). In turn, and still within a SNA
93 framework, T. Jellema, S. Keuning, P. McAdam and R. Mink also deal with the issue in: “Developing a Euro Area
Accounting Matrix: Issues and Applications” (European Central Bank, Working Paper Series, 356, 2004).

⁶ Using the most recent, definitive and complete National Accounting data available when this paper was written.

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