The Importance of Social Aspect of Income Distribution in the Social Accounting Matrix

The system of national accounts which is responsible for the organization of aggregate economic data, has been revised in response to the changes in the world economy together with social (poverty, unemployment and so on), and environmental problems. Recently the role of information economy is added to the necessity of such revisions. In spite of that, the existing revised systems do not have necessary and sufficient flexibility to capture the notion of growth and social justice. This is considered to be one of the main drawbacks of the existing aggregate and sectoral accounting systems. Any attempt to provide solutions is faced with the following three fundamental questions: A: In order to remove some of the main drawbacks of the existing accounting systems, which approach should be adopted? B: Is it possible to organize people's statistics like organized aggregate and sectoral economic statistics in much broader matrix framework than the existing accounting one? C: After organizing people's statistics with aggregate and sectoral statistics in a broader matrix framework, could it be used for comparable purposes? The main focus of this paper is to find answers to these three questions.