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



Section 3 discusses the importance of the SAM (Social Accounting Matrix) as a consistent and
flexible database for economic modelling to be used for the purpose of ensuring a better policy
analysis.

Section 4 ends the paper with some concluding remarks.

2. From a National Accounting Matrix (NAM) to a Social Accounting Matrix (SAM)

As will be shown, there exists a close correspondence between both the accounts and the cells of the
NAM and the SAM.

Let us consider each transaction (“T”) as a nominal flow in the economy, with which are associated
two indexes, characterizing its location in a matrical framework and representative of the row and
column accounts in which it is recorded: an income (the first) and the corresponding expenditure
(the second) - in accordance with the convention described in Section 1.

Table 1. The accounts and the “T” indexes of the NAM and the SAM

_____NAM_____

_____SAM_____

Description (SNA93; ESA95)

account

index

account

index

goods and
services________

0

products

p

shows how the available products are used

production

I

activities

a

describes the transactions that constitute the
appropriately named production process______________

primary
distribution of
income

II.1

factors of
production

f

shows how the incomes that accrue as a result of
involvement in processes of production or the
ownership of assets that may be needed for production
purposes are distributed among institutions and
activities_____________________________________________________

secondary
distribution of
income,
redistribution of
income in kind
account; use of
income________

II.2&3;

II.4

current
account of the
(domestic)
institutions

dic

shows, on the one hand, how the balance of
primary income (national income) is transformed
into disposable income through the receipt and
payment of current transfers, and, on the other
hand, how gross disposable income is distributed
between final consumption and saving

capital

III. 1

capital
account of the
(domestic)
institutions

dik

records transactions linked to acquisitions of non-
financial assets and capital transfers involving the
redistribution of wealth

financial

III.2

financial
account of the
(domestic)
institutions

dif

records transactions in financial assets and
liabilities between institutional units, and between
these and the rest of the world

rest of the
world_________

V

rest of the

world________

rw

records transactions between resident and non-

residentunits_______________________________________



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