Social Accounting Matrices and Economic Modelling
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A Social Accounting Matrix (SAM) is a comprehensive, economy-wide database that contains information about the flow of resources associated with all transactions that have taken place between economic agents in an economy during a given period of time. Its use can extend beyond that of serving as a summary of transactions that have taken place in an economy. The SAM approach to modelling makes use of the SAM format to present economic theory. The versatility of SAMs has made them databases of preference for economic modelling. This paper provides an overview of the structure of a SAM, touching on issues such as economic accounting, the circular flow of resources in the economy and the SAM-accounts, and thereafter explains the SAM approach to modelling. As such the paper serves as a reference framework for users of SAMs.