Social Accounting Matrix (SAM) Modelling for Policy Analysis (Pretoria, South Africa)

Course Description

Economy-wide models are useful tools for investigating the effects of policies with direct and indirect feedback within an economy. These models are based on economic theories and supported by data analytics. They draw from macroeconomic and sectoral national accounts data, supply-use tables and institutional data organized in a social accounting matrix (SAM) format and are informed by empirically derived behavioural rules for consumers, producers, investors, households and governments. Economy-wide models are useful to assess “whatif” scenarios involving a variety of policies and shocks. They can shed light on the impacts of policies and shocks on employment, output, national budgets, imports and exports, and consumption patterns, among others.

This training equips participants with Input-Output and SAM modelling skills that are valuable for policy analysis. It covers topics such as descriptive analysis and interlinkages in the economy, multipliers and their interpretation, simple policy applications and short comings of simple multiplier analysis. It provides hands-on exercises on multiplier analysis and simulations.

  • Economists
  • Economic planners
  • Senior government officials
  • Development practitioners
  • Policy analysts
  • Academics
  • Economists needing background in order to work with or understand results from SAM modelling
  • The course helps participants:
  • Have an understanding of the structure of a SAM
  • Understand input-output/social accounting matrix multiplier analysis
  • Have a good understanding of what a SAM model is, and the types of problems for which they can be useful
  • Understand the general functioning and capabilities of SAM models
  • Develop enough skills in SAM modelling
  • Interpret and present SAM multiplier and simulation results in a comprehensive manner
  • Overview of National Accounting System
  • Input-Output (IO) matrices
  • An introduction to Social Accounting Matrices (SAM)
  • The circular flow
  • Structure of a SAM
  • Interpretation and analysis of the matrices
  • Introduction to modelling with matrices
  • Derivation of accounting multipliers
  • Interpretation of multipliers
  • Impact assessment using multiplier analysis
  • Forward and backward linkages
  • Structural Path Analysis
  • Additive and multiplicative decomposition
  • Derivation of the multiplicative decomposition
  • Formulating exogenous scenarios
  • Computing simulations for policy analysis
  • Interpreting and reporting results
  • Discussion of advanced SAM modelling topics

Training Methodology

The training approach is highly interactive. It uses a mixture of presentations by the facilitator and by participant(s), group or individual exercises, use of case studies and role plays. These proven learning techniques enhance understanding and retention of covered issues.