From Data to Decisions: Leveraging the Social Accounting Matrix and Multipliers Analysis to Guide Equitable Policy Decision in Greece

The study develops an updated national Social Accounting Matrix (SAM) for Greece, aiming to support targeted policy design through SAM multiplier analysis. Based on the 2020 Greek Input-Output Table, the SAM includes 14 aggregated subsectors, while its construction and multiplier analysis were implemented in Python, producing reusable modular code. Output, value-added, and income multipliers were estimated using the Moore-Penrose pseudo-inverse via Singular Value Decomposition (SVD). Findings highlight the substantial role of government transfers in supporting household and firm incomes, largely due to COVID-19 relief measures. The analysis shows that production expansion in energy, construction, and wholesale and retail trade can stimulate broad economic activity, while service-related sectors play a critical role in income generation and equity considerations. At the same time, firms in trade, hospitality, and real estate were heavily affected by the pandemic shock. The study contributes to the literature by addressing the gap in multiplier analysis for the Greek economy and enhancing the understanding of how exogenous shocks propagate through the system.