Investment allocation between economic sectors using social accounting matrix multipliers and fair allocation methods

Economists has exploited social accounting matrix in linear economic models to analyze the effect of some variables such as government spending, investment, and export on other economic indicators namely, total outputs, employment, household income, and economic growth. In this paper, it is analyzed the influence of investment injection on some economic indicators. Then, to gather different indicators in a general view, these economic indicators are applied as inputs and outputs in a data envelopment analysis model. Data envelopment analysis models evaluate and rank all economic sectors based on multiple indicators. On the whole, to get to the best possible economic conditions, it is used a fair revenue allocation method based on a data envelopment analysis model to determine each economic sector’s quota of investment. Next, we propose a new fair revenue allocation method improving the prior one a little. Finally, it is presented the whole process for Iran’s social accounting matrix and subsequent results.

Keywords:

Data envelopment analysis , Investment allocation , Social Accounting Matrix , Multiplier analysis , Fair allocation methods