NA/73 Integrated estimates of productivity and terms-of-trade changes from a Social Accounting Matrix at constant prices

Keuning, Steven J.(1994).This paper demonstrates that measures of real income change for the total economy can best be derived from real income changes per sub-sector. For this purpose a Social Accounting Matrix (SAM) at constant prices has been compiled. By breaking down value added at constant prices into constant price estimates for each primary input category, productivity changes by industry can be estimated as an integral part of the regular national accounts compilation. The national total trading gain or loss from a change in the terms of trade is as well allocated to sub-sectors, thus embedding the estimation of this macro-measure into a meso-consistency framework. These ideas have been applied in a case study for Indonesia.