Macroeconomic Policies and Income Distribution: SAM Framework

This book studies the relationship between macroeconomic policies and urban-rural income gap in Egypt. A Social Accounting Matrix (SAM) technique is used by constructing a SAM for the Egyptian economy. The book explains steps for updating input-output tables as a method helping in constructing SAM. As a data system for description analysis, the constructed SAM is used in analyzing the structure of the Egyptian economy and studying the behavior of rural and urban households. The SAM multiplier, GINI and Pesudo factor coefficients are conducted to analyze the effects of different income sources on the rural-urban income gap. SAM multiplier matrix is benefited in specifying the total impact of each account (sector) on other accounts (sectors). Finally, SAM multiplier is also used in running some of policy simulations to assess the impact of macroeconomic policies on rural-urban income gap.