Modeling Prices in a Sam Structure

The aim of this paper is to develop an intersectoral price model in a social accounting matrix. Traditionally, the emphasis of the social accounting methodology has been on quantity oriented models and their income effects. In contrast, the authors use the social accounting matrix to develop a price model that captures the interdependence among activities, households, and factors and provides a complete set of accounting prices. Furthermore, they use decomposition techniques to trace underlying general equilibrium effects.