Title Analysis of the Foreign Sector as an Endogenous Variable in SAM Linear Models: An Empirical Proposal
Authors Fuentes Saguar, Patricia D., Mainar Causape, Alfredo J., CARDENETE FLORES, MANUEL ALEJANDRO, CARDENETE FLORES, MANUEL ALEJANDRO
External publication No
Means Estud. Econ. Apl.
Scope Article
Nature Científica
Area International
Publication date 01/08/2017
ISI 000423575400010
Abstract 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.
Keywords Foreign Sector; Social Accounting Matrix; Linear Multiplier Model; Impact Analysis
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