Economic Social Accounting Matrix

An Economic Social Accounting Matrix (ESAM) is a comprehensive tool that captures how money flows through an economy, linking households, businesses, and government activities. It shows the relationships between different sectors, like agriculture and services, and includes aspects such as income, consumption, and investment. By organizing this information in a matrix format, it helps policymakers understand the economic impact of decisions, identify inequalities, and measure well-being beyond just financial metrics. Essentially, it provides a clear picture of how economic activity affects both society and the environment.