**Acknowledgements**

income, that is to say, GDP and GNI, whereas for other institutions, this scenario is generally

Higher levels of disaggregation, namely of the households, would be needed to find out more about these effects; however, from this very simple approach, although with many limitations, two main ideas should be emphasised regarding the impact of possible changes (increases and decreases) in the institutions' income—resulting from social policy measures or not. First, the origin of these changes is not indifferent, either for the target they are intended to achieve, or for the rest of the economy. Second, changes in income directed to specify groups should not neglect the corresponding multiplier effects for which the structure of the use of that

A study of the effects of a social policy measure of the increase in households' income is made by adopting a SAM-based approach applied to Portugal. The national accounting rules and the nomenclatures, defined by the adaptation to European Union of the latest version of the System of National Accounts [2, 3], underlies the SAM structure, whereby numerical and algebraic versions are defined and worked out, with the purpose of sup-

This chapter presents and applies a methodology that has been researched by the author with the aim of defining a method that allows a better knowledge of the different aspects of the activity of a country, as well as carrying out experiments on its functioning. For this, the data of the flows associated with market transactions and transfers, measured by the national accounts, are organised in a matrix form, in such a way that origin, use, and distribution of income can be worked together. Thus, focusing the attention on the parts to be studied, the structural features can be evidenced and multiplier effects of changes on the involved flows

In order to show the comprehensiveness and consistency of the tool used, our study begins with the presentation of the highest aggregated level of a matrix form of the national accounts—a macro SAM. Covering the different types of flows in seven accounts, or rows and columns, from that matrix, it is possible to identify practically all the transactions and transfers, that is, the nominal or monetary flows, measured by the national accounts, within the (domestic) economy, and between the same and the rest of the world, which occurred in a particular geographical space, during a given time period. As illustrated for Portugal in 2015, a first snapshot of the activity of a country can be taken from this macro SAM, which is complemented by the main macroeconomic aggregates, calculated outside that matrix, but

From the description of the seven accounts (rows-columns) of the macro SAM, it is possible to identify the current account of institutions as being the part to be focused on for the study

more favourable.

12 Sustainability Assessment and Reporting

income should be considered.

porting this study.

with the data of its cells.

**5. Summary and concluding remarks**

can be accounted for. This is carried out in this chapter.

The financial support from national funds by FCT (Fundação para a Ciência e a Tecnologia) is gratefully acknowledged. This paper is part of the Strategic Project UID/ECO/00436/2013.
