Author
Faculty member of Allameh Tabatabai University
Abstract
In this article, the socio-economic analysis of the SAM multiplier, and its flexibility with respect to the aggregate Keynesian multiplier, extended Keynesian multiplier, Loentief's production multiplier and Miyazawa's combined multiplier will be briefly reviewed. Thereafter, we highlight the methodology of SAM in terms of endogenous and exogenous accounts with emphasis on the two main approaches of SAM multiplier: accounting and fixed price multiplier Matrices. With reference to the availability of the Iranian data, we observed that, due to lack of information, the fixed price multiplier could not be used, and therefore, the accounting price multiplier has been applied for socio and economic analysis. Secondly, the original form of the 1996 SAM is available in terms of commodity x industry and industry x commodity matrices. For our analytical purposes, it is therefore required that these matrices should be converted into final matrix either by industry technology and commodity technology assumptions in the SAM. The final results which for the first time reveal the socio-economic aspects of the Iranian economy in a consistent way, will be presented and analysed in three separate sections as follows: matrix multiplier for production, matrix multiplier for factor of production, and matrix multiplier for domestic institutions. The results of these matrices have been decomposed and analysed in terms of initial effects, truncated closed loop effects, othere ffects and closed loop effects.
Keywords
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