A social accounting matrix approach to appraise sectors with a zero deficit public budget

Abstract

The aim of this paper is to develop a mixed empirical methodology to identify, in a zero public deficit framework, those sectors with the capability for growth of output and employment, while also considering the environmental implications of the production of each sector. Their economic activities are ranked and selected in terms of their output, employment, and emissions multipliers. For an empirical analysis, a Social Accounting Matrix of the Spanish economy for 2008 is used. Among the findings, highlights the fact that consideration of the zero deficit in the public budget significantly alters the importance of the sectors for economic development, turning out key choosing a criterion for determining the allocation of public funds.