Linear multipliers applied to a social accounting matrix for Extremadura

Abstract

The topics related to the income distribution are specially interesting when we try to measure the social and economic impacts of a economic policy given decission. When a strategy of balanced development is tried to imply in a given country or region, inequality, poverty, unemployment, etc, not only economic growth, are important topics. The study is going to be focused in Extremadura, one of the less developped regions in Spain. We'll use a Social Accounting Matrix made by the authors, and it shall let us to show the circular flow of income and the relationships between the accounts included in tha SAM. An exercise of linear multipliers on the matrix shall be presented to get outcomes about the effects of several exogenous shocks on the endogenous accounts that we'll want to choose. We'll compute different types of multipliers: production, income, employment, etc., and we'll try to show different ways to get a balanced endogenous development for Extremadura, and which decissions are better to get it.