Analysis of the Foreign Sector as an Endogenous Variable in SAM Linear Models: An Empirical Proposal

The traditional consideration of the Foreign Sector as an exogenous variable in Input-Output or Social Accounting Matrices (SAM) linear models has led to biased estimations of hypothetical demand shocks when applying those models. The objective of this work is to analyse the possibility of including...

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Bibliographic Details
Published in:Estudios de economía aplicada 2017-08, Vol.35 (3), p.737-748
Main Authors: FUENTES SAGUAR, PATRICIA D, MAINAR CAUSAPÉ, ALFREDO J, Cardenete, M Alejandro
Format: Article
Language:English
Subjects:
Análisis de impacto
Economic models
Foreign business
Foreign Sector
Impact Analysis
Linear Multiplier Model
Matriz de Contabilidad Social
Modelo lineal de multiplicadores
Sector Exterior
Social accounting
Social Accounting Matrix
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Summary:The traditional consideration of the Foreign Sector as an exogenous variable in Input-Output or Social Accounting Matrices (SAM) linear models has led to biased estimations of hypothetical demand shocks when applying those models. The objective of this work is to analyse the possibility of including operations with foreign countries as an endogenous variable while solving the difficulties associated to this option. Thus, the methodology herein proposed makes it possible to prevent the influence and impact of the Foreign Sector from being overvalued, such as they are when estimated by other methodologies. A Social Accounting Matrix for Spain has been used as the database for this work.
ISSN:1133-3197
1697-5731
1697-5731