Defourny and Thorbecke: Structural Path Analysis and Multiplier Decomposition within a SAM framework

Defourny, Jacques and Erik Thorbecke. (1984). Structural Path Analysis and Multiplier Decomposition within a Social Accounting Matrix Framework (Vol. 94, 111-136): Blackwell Publishing for the Royal Economic Society.

“The main purpose of this paper is to apply structural path analysis to a SAM framework” (111).

Figure 1 shows a matrix of interaction between three distinct types of economic activity: Productive activities, factors and institutions (113). This interaction is represented within a SAM. A SAM must also be able to take into account both endogenous and exogenous factors of modeling (114). Exhaustive SAMs are presented.

Structural path analysis involves the exploration of the methods by which one action eventually arrives at its conclusion. There are different poles involved in the structural path of an action and its outcome based on the structure in that it is embedded. This structural path method is applied to the earlier SAM example: South Korea.