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 Ac counting methodology has been on quantity oriented models and their in come effects. In contrast, we use the Social Accounting Matrix to deve lop a price model that captures the interdependence among activities, households, and factors and provides a complete set of accounting pric es. Furthermore, we use decomposition techniques to trace underlying g eneral equilibrium effects.