Social Accounting Matrix (SAM)

A Social Accounting Matrix (SAM) is a comprehensive statistical tool that maps out all economic transactions within an economy. It captures how income flows between households, businesses, government, and sectors, showing who earns, spends, and distributes money. Essentially, it provides a detailed snapshot of an economy’s structure, illustrating interdependent relationships and flows of resources. Policymakers and economists use SAMs to analyze economic activity, assess impacts of policy changes, and understand how different parts of the economy are connected. It’s like a detailed financial map of an entire economy's interactions.