Exploring Economic Networks: The Social Accounting Matrix and Its Role in Economic Analysis

Abstract

This study addresses the importance and applications of the SAM in various economic contexts. The SAM for Chile 2017 has been constructed based on the Household Budget Survey and data provided by the Central Bank of Chile. This has been meticulously disaggregated to allow for in-depth analysis. The relevance of the SAM in evaluating two fundamental economic approaches is highlighted: Multipliers and Computable General Equilibrium models. While models based on multipliers estimate the impact that a change in income in a specific sector has on the economy, CGE models offer a more holistic view, considering intersectoral adaptations and thus providing a more accurate scenario. Subsequently, various applications in areas such as environmental economics, public policy, and income distribution are evidence. This paper not only presents a methodology for the development of a SAM but also demonstrates its utility in the field of economic and its ability to outline economic interconnections.