A 2005 Agriculture-Food SAM (AgriFood-SAM) for Ireland

Ana Miller (), Alan Matthews, Trevor Donnellan () and Cathal O'Donoghue
Additional contact information
Trevor Donnellan: Rural Economy Research Centre, Teagasc

The Institute for International Integration Studies Discussion Paper Series from IIIS

Abstract: This paper describes the construction of a social accounting matrix with disaggregated agricultural and food industry sectors for Ireland for the purpose of agri-food policy simulations. The base year for the AgriFood–SAM is 2005 and it draws on a recently constructed 2005 SAM for Ireland (Miller et al., 2011). Its unique features include a high level of disaggregation of the agricultural and food industry sectors as well as the integration of individual household data for the purposes of micro-simulation analysis. The AgriFood–SAM documented here can be used as a tool to analyse the intersectoral linkages between the agri-food sectors and the Irish economy. Multiplier effects for exogenous changes in final demand for different agri-food activities are presented. This paper also presents the economic impact of reducing GHG emissions from the agricultural sectors by 20%, using a SAM multiplier analysis. The linear SAM model is based on the Leontief model, but as it incorporates income generation and distribution as well as the production side, it captures the complete circular flow of the economy. The results suggest that a 20% reduction in GHG emission by 2020 will have a contractionary effect in the whole economy. This policy will reduce the total gross output in the economy by more than half a billion euro and have an indirect effect on the household by reducing its total income with more than €200 million. In interpreting the results form a multiplier analysis we should be careful as the model assumes fixed proportion production functions, fixed prices and free availability of resources. In other words if cattle output reduces by 12.6% in 2020 then the level of inputs used in by this sectors is assumed to be reduced by same percentage. Similarly employment and income are assumed to be reduced in the same proportions. Also, multipliers are based on the state of technology within a sector at a point in time. Hence, multipliers may change in different sectors over time as technology changes.

Keywords: social accounting matrix; input-output table; agriculture; multiplier analysis; Ireland (search for similar items in EconPapers)
JEL-codes: C67 D57 Q12 Q18 (search for similar items in EconPapers)
Pages: 28 pages
Date: 2011
New Economics Papers: this item is included in nep-agr, nep-cmp and nep-hme
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://www.tcd.ie/triss/assets/PDFs/iiis/iiisdp372.pdf

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:iis:dispap:iiisdp372

Access Statistics for this paper

More papers in The Institute for International Integration Studies Discussion Paper Series from IIIS 01. Contact information at EDIRC.
Bibliographic data for series maintained by Maeve ().