Multiplier Decomposition, Inequality and Poverty in a SAM Framework

Marisa Bottiroli Civardi and Renata Targetti Lenti ()
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Renata Targetti Lenti: Università degli studi di Milano-Bicocca

Rivista di statistica ufficiale, 2008, vol. 10, issue 1, 31-57

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.

Keywords: Income distribution; social accounting matrix; multiplier decomposition; growth; labour market; structure of production (search for similar items in EconPapers)
JEL-codes: D31 D33 D57 E16 O15 O43 (search for similar items in EconPapers)
Date: 2008
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:isa:journl:v:10:y:2008:i:1:p:31-57

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