Income multiplier analysis based on social accounting matrix for public policy construction

The social accounting matrix differs from national accountings since it delineates detailed data on economic units and how these data are allocated among them. Additionally, there is no reconciliation in the form of the social accounting matrix, which makes studies in this area unique and offers a data set regarding the field. In this work, we construct a 37x37 social accounting matrix for the year 2012, which consists of households, companies, government, investment-saving account, and foreign sector. The computed social accounting matrix is split into endogenous and exogenous accounts in accordance with the multiplier analysis. Households and companies are assumed as endogenous accounts, whereas investment-saving accounts are presumed as exogenous accounts. In this study, exogenous shocks are created through exogenous accounts and their impacts on endogenous accounts are examined. In this context, the scenarios that involve an increase in wages, interest payments, and service sector export are investigated. These scenarios are explored by employing the income multiplier analysis, and their income effects are detected.