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Multiplier Decomposition, Inequality and Poverty in a SAM Framework

Author

Listed:
  • Marisa Bottiroli Civardi
  • Renata Targetti Lenti

    (Università degli studi di Milano-Bicocca
    Università degli studi di Pavia)

Abstract

The aim of this paper is to show how and why it is possible to assess both direct and indirect effects of exogenous income injections on mean income of different household groups using a new approach based on the decomposition of SAM-based multipliers. The approach we propose allows analyzing the level of inequality in the distribution of income linking the formation of household income to the features of country’s productive structure. After deriving the “accounting price multipliers matrix”, we introduce a new technique (Pyatt, Round, 2006) in order to decompose each element of the total multiplier matrix which enlighten in “microscopic detail” the linkages between each household group’s income and other accounts whose income has been exogenously injected. The meaning and the relevance of the multiplier decomposition method will be illustrated with an application to the Italian economic system.

Suggested Citation

  • Marisa Bottiroli Civardi & Renata Targetti Lenti, 2008. "Multiplier Decomposition, Inequality and Poverty in a SAM Framework," Rivista di statistica ufficiale, ISTAT - Italian National Institute of Statistics - (Rome, ITALY), vol. 10(1), pages 31-57, October.
    • Handle: RePEc:isa:journl:v:10:y:2008:i:1:p:31-57
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    References listed on IDEAS

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    1. Enrico Fabrizi & Maria Rosaria Ferrante & Silvia Pacei, 2008. "Measuring Sub‐National Income Poverty By Using A Small Area Multivariate Approach," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 54(4), pages 597-615, December.
    2. Jiang, Jiming & Lahiri, P., 2006. "Estimation of Finite Population Domain Means: A Model-Assisted Empirical Best Prediction Approach," Journal of the American Statistical Association, American Statistical Association, vol. 101, pages 301-311, March.
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    Cited by:

    1. Marisa Civardi & Renata Targetti Lenti, 2018. "Can the link between functional and personal income distribution enhance the analysis of inequality?," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 65(2), pages 137-156, June.
    2. Mbanda, Vandudzai & Bonga-Bonga, Lumengo, 2018. "Impacts of Public Infrastructure Investment in South Africa: A SAM and CGE-Based Analysis of the Public Economic Sector," MPRA Paper 90613, University Library of Munich, Germany.
    3. Azharia ELBUSHRA & Ibrahim EL-DUKHERI & Dr. ALI A. SALIH & Raga ELZAKI, 2010. "SAM-Based Accounting Modeling and Analysis - Sudan 2000," EcoMod2010 259600049, EcoMod.

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    More about this item

    Keywords

    Income distribution; social accounting matrix; multiplier decomposition; growth; labour market; structure of production;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D33 - Microeconomics - - Distribution - - - Factor Income Distribution
    • D57 - Microeconomics - - General Equilibrium and Disequilibrium - - - Input-Output Tables and Analysis
    • E16 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Social Accounting Matrix
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth

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