Distribution of aggregate income in Portugal within the framework of a Social Accounting Matrix. Modelling the household sector

Open Access

Abstract

Based on the principle that the study of a sector should be carried out under a general equilibrium approach, and moving beyond the context of partial equilibrium, the Social Accounting Matrix, usually referred to as SAM, is one possibility for meeting such needs, in that it provides a complete account of the circular flows in the economy. The economic flows associated with households, enterprises, government and other institutions from 1995 to 2000 will be analysed from aggregated SAMs, based on the country's national accounts statistics. Accounting multipliers will be calculated to facilitate the study of the effects resulting from changes in household income. Therefore, SAMs are modelled, and structural path analysis will be used for the decomposition of the calculated multipliers. At the end, general guidelines will be established for studying income distribution and poverty in Portugal.