Data,Linkages and Models: US National Income and Product Accounts in the Framework of a Social Accounting Matrix

In policy analysis, there is a continuing tension and interplay between issues, models and data. Issues and models have changed in recent years, and there is a need for evolution in the underlying economy-wide economic data base. We discuss accounting frameworks for integrating micro-survey data with macro-data from the national economic accounts. We take a modeler's perspective, arguing that new accounts are needed to support policy modeling. We discuss in detail the use of a social accounting matrix (SAM). A SAM provides a data framework which reflects an actor/transaction view of the economy and supports disaggregated economy-wide modeling. We discuss the relationship between a SAM and the existing national economic accounts for the USA, including the national income and product accounts and the input–output accounts.