Understanding The Process Of Economic Change

Social Accounting Matrix (SAM) is a kind of economic accounting table, which describes the circulation process among production, income and demand in a matrix. The data of double entry are recorded only once in a Social Accounting Matrix. Social Accounting Matrix links together the IO table, National Income with production account. This link makes it possible for the analyst to investigate the given country or area in given year the economic and social structure and policy issues within an integrated framework. SAM describes seemingly the circulation process of production create income, income create demand and demand lead to production. Actually, it implys the continual trade between the real world and institution, which make it present not only the economic structure but also the social structure.Social Accounting Matrix is a mean of organizing accounting data that is in most common use presently. Since the establishment of the first SAM, its application has been extending broadly to almost all the economic and social field. It is benefit significantly to do some study and summery systematically. This paper includes 5 chapters. The first part introduces what is SAM and what we can do by SAM, including the structure of SAM, the relation between SAM, SNA and IO Matrix, the principles and properties of SAM. The function of SAM is introduced in the last section. The second part presents how to construct a SAM, involving the classification of SAM account, how to design a SAM, the methods of contracting a SAM, etc. The example of Sri Lanka SAM 1970 is also given in this part. The last section is the introduction of China-SAM's construction. The third chapter introduces the application of SAMs, mainly include the derivation and decomposition of SAM Multipliers and its extensions. Followed the third...