Author: Polina Ye. Animitsa, Cand. Sc. (Econ.), Research Associate, the Institute of Economics of the Ural Branch of the Russian Academy of Sciences

Abstract. The article discusses the development of social accounting matrix, or financial flows matrix, and its application for assessing economic multiplicative effects in economy of a region. Financial flows matrix is based on the balance model of economy which is built with the use of national accounts methodology. The peculiarity of the proposed matrix is the use of a disaggregated account of households, what increases the accuracy of the calculated multiplier. Using the case of Sverdlovsk oblast the author describes the process of financial flows matrix construction and interprets each element. Households are divided into five groups (20% each) by their income and expenses. The author calculates multiplicative effect in economy of a region generated by an exogenous increase in the income of households related to different welfare groups. Taking into account possible multiplicative effects will help boost the quality of investment, fiscal and social policies of a region.

Keywords: balance method, social accounting matrix, modelling, multiplier, households, region

For citation: Polina Ye. Animitsa. Modelling of Households’ Impact on Creation of Multiplicative Effects in a Region (the Case of Sverdlovsk Oblast). Upravlenets – The Manager, 2016, no. 2(60), pp. 28–33.