Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/31560
Authors: 
Year of Publication: 
2008
Series/Report no.: 
Working Paper No. 552
Publisher: 
Levy Economics Institute of Bard College, Annandale-on-Hudson, NY
Abstract: 
This study proposes a simple modification to a Social Accounting Matrix (SAM) in order to analyze the multiplier effects of a new sector. A different input composition, or technology, of the sector makes a conventional analysis of final-demand injections on existing sectors invalid. We show that the modificationso-called hypothetical integrationis an efficient way to incorporate the difference into the SAM, rather than costly full-scale rebalancing. We apply this method to the case of the Expanded Public Works Programme in South Africa, and show that the proposed approach effectively represents the labor intensity requirement of the program and a new-factor income distribution.
Subjects: 
Hypothetical integration
multiplier analysis
social accounting matrix
social sector intervention
Expanded Public Works Programme, South Africa
JEL: 
C67
D57
E24
E62
H51
H52
Document Type: 
Working Paper

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