Balancing a Social Accounting Matrix: Theory and Application (Revised Edition)

26 Pages Posted: 23 May 2014

See all articles by Andre Lemelin

Andre Lemelin

INRS-UCS Université du Québec

Ismael Fofana

International Food Policy Research Institute (IFPRI)

John Cockburn

Partnership for Economic Policy (PEP); Université Laval; Partnership for Economic Policy (PEP)

Date Written: December 11, 2013

Abstract

Computable general equilibrium modeling requires a consistent and coherent benchmark data set, most of which is generally organized in the form of a Social Accounting Matrix (SAM). These data generally come from quite diverse sources and correspond to different periods of time. As a result, they often contain inconsistencies. We present a simple computer program that makes it possible to reconcile this information in order to balance a SAM. The program minimizes the changes to the base data using various optimizing techniques, including cross-entropy and least squares. The program is an attractive and easy alternative to the arbitrary and time-consuming manual and other methods generally used to balance SAMs.

Keywords: Matrix balancing, Social accounting matrix, Cross-entropy

JEL Classification: C63, C68, C82

Suggested Citation

Lemelin, Andre and Fofana, Ismael and Cockburn, John, Balancing a Social Accounting Matrix: Theory and Application (Revised Edition) (December 11, 2013). Available at SSRN: https://ssrn.com/abstract=2439868 or http://dx.doi.org/10.2139/ssrn.2439868

Andre Lemelin (Contact Author)

INRS-UCS Université du Québec ( email )

385, rue Sherbrooke est
Montreal, Quebec H2X 1E3
Canada

Ismael Fofana

International Food Policy Research Institute (IFPRI) ( email )

1201 Eye St, NW,
Washington, DC 20005
United States

John Cockburn

Partnership for Economic Policy (PEP) ( email )

P.O. Box 30772-00100
ICIPE - Duduville Campus, Kasarani
Nairobi
Kenya

Université Laval ( email )

Dept. of Economics
Québec, Quebec G1V 0A6
Canada

Partnership for Economic Policy (PEP) ( email )

Duduville Campus, Kasarani
P.O. Box 30772-00100
Nairobi
Kenya

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