Social Accounting Matrix in Policy Analysis

Social Accounting Matrix (SAM) In Policy Analysis
Dr. Sherko Soltanpanahi sherko2003@gmail.com
Contents
1-Introduction 2-Definition of SAM 3-The Structure of SAM 4-Characters/Accounts of SAM 5-SAM features of and Some key questions 6-from inputoutput tables to social accounting matrices 7-Conclusion 8-References
2
Introduction
The structure of an economy
comprised of the types and location of economic activity and the associated technological and behavioral relations. the types of economic agents/organizations and institutions form.
'productive' dimension understanding the structure of an economy.
'distributional ' dimension
SAMs are designed as a means of characterizing and

transfers) among economic agents, and through them activities, in an economic system within an accounting period, commonly a year.
Source: Pyatt and Round (1985), Round (2003)
By construction, a SAM summarizes the transactions (including
Definition of SAM
Social Accounting Matrix (SAM) can be defined as an organized matrix representation
of
all transactions and transfers between different production activities, factors of production and institutions (Like households, corporate sector and government) within the economy and with respect to the rest of the world.
Source: Saluja, M. R. and Bhupesh Y. (2006)
Structure of SAM
The origin of the SAM framework goes back to1758, when Francois Quesnays famous Tableau Economique, was published. However, the social accounting is commonly identified with the early work of Sir Richard Stone and his colleagues .
Franois Quesnay (1694 1774)
Sir John Richard Nicholas Stone (1913 1991) was an eminent British economist who in 1984 received the Nobel Memorial Prize in Economic Sciences for developing an accounting model that could be used to track economic activities on a national and, later, an 5 international scale
Source: Manson, N.(2010) and http://en.wikipedia.org
Structure of SAM
To understand what is SAM and how it can be estimate understanding two major concepts is required: circular flow and Input-Output table
Circular flow 1
Input- out put Table
SAM
3
6
CIRCULAR FLOF OF INCOM
Source: Rutherford, T. and Sergey P. (1999)

SAM is a comprehensive accounting frame work
within which the full circular flow of
?
8
income from production to factor incomes, household income to household consumption and back to production is captured.
Source: Manson, N.(2010)

Circular flow or Circular flow of income refers to a simple economic model which describes the reciprocal circulation of income between producers and consumers.
In the circular flow model, the inter-dependent entities of producer and consumer are referred to as "firms" and "households" respectively and provide each other with factors in order to facilitate the flow of income.
9
Source: Manson, N.(2010)
In a SAM all the transactions in the economy are presented Circular Flowaof Income in the form of matrix. Factor Costs
(value added
Factor Markets
Wages & Rents

Households
Domestic Private Savings
Ind.Taxes
D.Taxes Gov. Savings
Fiscal surplus
Firms
Intermediate Demand
Government
Saving/INV
Product
Export (E) Import (M) Sales Income
Social Transfers
Consumption spending (C)
Markets
Recurrent spending (G)

Foreign grants and loans
Investment Demand (I) Capital in flow

10
Rest of the World
Remittances
Input- out put table
11

To summarize the circular flow and quantative or computable economics analysis an InputOutput table could be used. Input- out put table An I-O table describes the flows among the various sectors of the economy. It represents the value of economic transactions in a given period of time. An I-O table also shows the cost structure of production activities.
12

Intermediate use
By Production sectors (1,..j..n)
Final use
by Private and Govt. Consum. Invest. Export
Out put
Domestic production (1,.. i..n)
Impost (1, ..i..n) Valu added

-Labor -capita -Indirect taxes
Input
Matrix A = an intermediate demand. Rows in the matrix A describe production sector outputs. Columns represent sectors which use outputs of production as intermediate inputs.
13
As such, a number in a cell Aij tells the amount of sector i's output used in the production of a sector j.
Structure of SAM
Intermediate use
Final use
Out put

Input
A breakdown of a final demand on private consumption, government consumption, investment, and export is shown in Matrix B.
14
Matrix C gives the information on total domestic production.

Structure of SAM
Intermediate use
Final use
Out put

Input
Matrices D, E and F give the corresponding information on imported goods and services.
Payments to labor and capital, depreciation, and indirect taxes are presented in Matrix G.
15
Structure of SAM
Intermediate use
Final use
An I-O table shows only the

Domestic production (1,.. i..n) A B Impost (1, ..i..n) Valu added D E
Out put
relationship between production accounts and the other accounts

F
Input
Matrix H is normally empty

summation over rows in Matrix I gives information on value-added If an IO table is balanced, then columns of Matrix J should be the same as the rows of Matrix C because total input equals total output for Source: Rutherford, T. and Sergey P. (1999) production sectors
16
Social Accounting Matrix

1 1 . 2 3 . . . . . .
3 . .
17
Accounts of SAM
A SAM is laid out as a square matrix in which each row and column is called an account. Table 1 shows the SAM that corresponds to the circular flow Each cell in the matrix represents, by convention, a flow of funds from a column account to a row account.
Expenditure columns
Activates C1 Activates R1 Commodities R2 Factors R3 Households R4 Government R5 Saving and investment R6 Rest of world R7 Total Commoditi es C2 Factors C3 Households C4 Governmen t C5 Saving and investment C6 Rest of world C7 Total
Income rows
Accounts
flow of funds from a column account to a row account

18
Source: Breisinger, C. et al, (2010).
Activities and commodities

The SAM distinguishes between activities and commodities. Activities: are the entities that produce goods and services Commodities: are those goods and services produced by activities.
They are separated because sometimes an activity produces more than one kind of commodity (by-products). Similarly, commodities can be produced by more than one kind of 19 activity
Source: Breisinger, C. et al, (2010).
Activities produce goods and services by combining the factors of production with intermediate inputs. This is shown in the activity column of the SAM, where activities pay factors the wages, rents, and profits they generate during the production process (that is, value-added). This is a payment from activities to factors, and so the value-added entry in the SAM appears in the activity column and the factor row [R3-C1]. Expenditure columns
Activates C1 Activates R1 Commodities R2 Intermediate demand Valu added Factor payment to households Sales taxes and import tariffs Direct taxes Private saving Import payment (M) Total factor spending Total household spending Government expenditure Total investment spending Foreign exchange inflow Social transfers Foreign remittances Foreign grants and loans Fiscal surplus Current account balance Commoditie s C2 Domestic supply Consumptio n demand (C) Recurrent spending (G) Investment demand (I) Export earning (E) Factors C3 Households C4 Government C5 Saving and investment C6 Rest of world C7 Total Activity income Total demand Total factor income Total household income Government income
Income rows
Factors R3 Households R4 Government R5 Saving and investment R6 Rest of world R7
Total saving Foreign exchange outflow
Total
Gross output
Total supply
Source: Rutherford,C. et al,Sergey P. (1999) Source: Breisinger, T. and (2010).
20
intermediate demand is a payment from activities to commodities [R2-C1]

Expenditure columns
Income rows
Total
Gross output
Total supply
21
Adding together value-added and intermediate demand gives gross output.

Expenditure columns
Income rows
Total
Gross output
Total supply
22
Commodities are either supplied domestically [R1-C2] or imported [R7-C2] Indirect sales taxes and import tariffs are paid on these commodities [R5-C2]
Expenditure columns
Income rows
Total
Gross output
Total supply
23
Final demand for commodities consists of household consumption spending [R2-C4],
government consumption, or recurrent expenditure [R2-C5]

Expenditure columns
Income rows
Total
Gross output
Total supply
24
gross capital formation or investment [R2-C6]
and export demand [R2-C7]

Expenditure columns
Income rows
Total
Gross output
Total supply
25
All of these sources of demand make up the commodity row (payments by different entities for commodities). On their own, the commodity row and column accounts are sometimes referred to as a SupplyUse Table, or the total supply of commodities and their different kinds of uses or demands.
Expenditure columns
Income rows
Total
Gross output
Total supply
26
Domestic institutions
Households are usually the ultimate owners of the factors of production, and so they receive the incomes earned by factors during the production process [R4-C3].They also receive transfer payments from the government [R4-C5] and from the rest of the world [R4-C7]
Expenditure columns
Activates C1 Activates R1 Commodities R2 Intermediate demand Value added Factor payment to households Sales taxes and import tariffs Direct taxes Private saving Import payment (M) Total factor spending Total household spending Government expenditure Total investment spending Foreign exchange inflow Fiscal surplus Social transfers Foreign remittances Foreign grants and loans Current account balance Commodities C2 Domestic supply Consumptio n demand (C) Recurrent spending (G) Investment demand (I) Export earning (E) Factors C3 Households C4 Government C5 Saving and investment C6 Rest of world C7 Total Activity income Total demand Total factor income Total household income Government income
Income rows
Total
Gross output
Total supply
27
Households then pay taxes directly to the government [R5-C4] and purchase commodities [R2-C4]. The remaining income is then saved (or dis-saved if expenditures exceed incomes) [R6-C4].
Expenditure columns
Income rows
Total
Gross output
Total supply
28
The government receives transfer payments from the rest of the world [R5-C7] This is added to all of the different tax incomes to determine total government revenues. The government uses these revenues to pay for recurrent consumption spending [R2-C5] and transfers to households [R4-C5].
Expenditure columns
Income rows
Total
Gross output
Total supply
29
The difference between total revenues and expenditures is the fiscal surplus (or deficit, if expenditures exceed revenues) [R6-C5]
Expenditure columns
Income rows
Total
Gross output
Total supply
30
Savings, investment, and the foreign account

According to the ex post accounting identity, investment or gross capital formation, which includes changes in stocks or inventories, must equal total savings. So far we have accounted for private savings [R6-C4] and public savings [R6-C5]
Expenditure columns
Income rows
Total
Gross output
Total supply
31
Savings, investment, and the foreign account

The difference between total domestic savings and total investment demand is total capital inflows from abroad, or what is called the current account balance [R6-C7] This is also equal to the difference between foreign exchange receipts (exports and foreign transfers received) and expenditures (imports and government transfers to foreigners) Expenditure columns
Income rows
Total
Gross output
Total supply
32
Balancing a SAM
Placing data within the SAM framework almost always reveals inconsistencies between the incomes and expenditures of each account.
Expenditure columns
Income rows
Total
Gross output
Total supply
Source: Rutherford, T. and Sergey P. (1999) Source: Breisinger, C. et al, (2010).
33
Features of SAM and Some key questions A SAM provides a snapshot of the economy by showing the circular flow of income and expenditure, usually for a given year.
It also sheds light on the activities of different economic agents by describing the interrelationships between firms, farms, households, investors, and the external sector
Source: (Rutherford, T. and Sergey P., 1999 and Anonymous, 1981).
34
Features of SAM and Some key questions A SAM includes both input-output and national income and product accounts in a consistent framework. SAM has been formulated, integrating both macroeconomic aggregates and income distribution. The structure of SAM varies from economy to economy.
35
Source: Rutherford, T. and Sergey P., (1999) and Anonymous, (1981)
Features of SAM and Some key questions

What is different between SAM and IO table? 1. A SAM is different from an inputoutput matrix because it not only traces the income and expenditure flows of activities and commodities, but it also contains complete information on different institutional accounts, such as households and the government and foreign entities. 2. The I-O matrix does not show the interrelationship between value added and final expenditures. By extending an I-O table, showing an entire circular flow of income at macro level. 36
Features of SAM and Some key questions

What is different between SAM and IO table? 3. As such, an IO table misses a link on distribution of income. 4. An IO table has information on indirect taxes but not on direct taxes.
37
Features of SAM and Some key questions Is SAM just for national level?
While a SAM is usually constructed for a country as a whole, it can also be constructed at the sub national level in cases in which a state or region is the focus. A national SAM can also include disaggregated sub national economic activities and can be organized geographically according to a countrys administrative or economic regions. The level of regional and sectoral disaggregation in a SAM depends on its purpose and the availability 38 of data.
Source: Gedik, M. A., (2011).
Features of SAM and Some key questions How large should be the SAM?
How large the matrix is depends on the limitations of the available data and the motivation one has for constructing it. In principle, there is no limit to the fineness of detail. In practice, both the data and the effort available for constructing the SAM impose imitations.
39
Source: Rutherford, T. and Sergey P., (1999)
Features of SAM and Some key questions What are data sources for SAM? The information needed to build a SAM comes from a variety of sources, such as: national accounts household surveys government budgets and the balance of payments.
40
Features of SAM and Some key questions What can SAM be used for? 1. SAMs can be used for some simple policy simulations and impact analysis such as income distribution, poverty analysis etc. 2. in addition SAM can be used as a modeling device in its own right or serve as a basis for other modeling strategies such as computable general equilibrium modeling. 3. it has been used to reconcile the national income, social accounts and I-O accounts within a unified statistical.
Source: Koronczi, K., (2004)
41
Features of SAM and Some key questions What are limitations of SAM? 1. prices are fixed, and do not adjust to reflect changes in, say, real activity. 2. the results of the simulations vary greatly depending on the assumptions made about which accounts are exogenous and which endogenous.
42
Source: Koronczi, K., (2004)
IMPACT ANALYSIS
USING INPUT-OUTPUT TABLES and SOCIAL ACCOUNTING MATRICES
*Note: all of examples of this part are taken from ANONYMOUS, 1999, Handbook of Input-Output Table with some changes and explanations by author.
Step I: Formulate the Question

Impact of what? -Impact of change in Final Demand for a commodity
Step II: Develop an Appropriate Model

Model built on IO Table - IO table is systems of accounts, not model - Need to specify relationships
Step III: Analyse the impact Step IV: Explain the results
44
the Question
What will be the impact on the economys production of a Rs.10 rise in demand for manufactures?
45
Developing an IO Model
Demand Supply
Demand: assumed to be exogenous Supply: necessary to satisfy change in demand Demand driven
46
A SIMPLE IO TABLE
Intermediate Demand Manuf Agric Manuf Agric Value Added Total Cost Manuf: Agric: Z11 150 Z21 200 V1 550 C1 900 Z12 500 Z22 100 V2 400 C2 1000 950 Final Demand F1 250 F2 700 Gross Output X1 900 X2 1000 950
X Material F( Z11 represent1values) Production: , Z21 , V ) Costs:1 (= Balances: symbols X2 = G( Z12, Z22 , V2) Man Agr SimplestManuf: assumption: ratio = F( Z toZ Z12 V is 1fixed, thus, if: Z11 11 , 2121 + F X1 of inputs + outputs 1V1 , ) C1 11 47 Z11/X1 and Z21/X1 and V1/X1 are all fixed Agric: X2 = G( 12 12+ ZZ22 V2)2 Z21 , 2222 + V2 Z , F C2 Then
Z11/Z21 etc will also be fixed
UNIT INPUT COEFFICIENTS

INPUT OUTPUT TABLE
Intermediate Demand Manuf Agric 150 200 550 900 500 100 400 1000
Final Demand 250 700
Gross Output 900 1000
Manuf Agric Value Added Total Cost

COEFFICIENT MATRIX
150/900 0.17 200/900 = 0.22

0.17 0.22 0.61 1.00 0.50 0.10 0.40 1.00
Manuf Agric Value Added Total Cost
Direct inputs required per R1 of output
48
Reminder of the Question

will be the impact on production of a Rs.10 rise in demand for manufactures?
What Once
we have the technical coefficients, we can start answering this question
49
FIRST ANSWER
COEFFICIENT MATRIX Manuf Manuf Agric Value Added Total Cost 0.17 0.22 0.61 1.00 Agric 0.50 0.10 0.40 1.00
Since R1 of Manuf requires Rs. 0.17 of Manuf inputs, Rs.10: Rs. 1.70 of manufacturing inputs Rs. 2.20 of agricultural inputs Rs. 6.10 of Value Added
WHAT ABOUT THE KNOCK-ON EFFECTS?
50
SPECIFY: FULL SYSTEM

Intermediate Demand Manuf Agric Manuf Agric Value Added aZ11 1 150 11X aZ21 1 200 21X V1 550 aZ12 2 500 12X aZ22 2 100 22X V2 400 V2 Final Demand F 250 F11 F2 700 F2 Gross Output 900 X1 X2 1000
Or, in full material So thematrix terms:balances can be written as: Manufacturing1 , weF1X1 X1X2 Z F1!!aXX a can a12 a11 a 12 ! Zij Since a X 11 !write ij ij 1 j ij a a22 X j a21X1 aX2 2 F2 ! X2 X2 F2 22X Agriculture 21 or AX F ! X
51
SOLVING THE SYSTEM

AX F ! X @ F ! X AX @ F ! (I A)X
@ (I A ) 1 F ! X
So if we know final demand vector and technical 0 1 0 coefficients matrix, can work out required gross outputs 0 1 0
0 0 1 Because of linearity, this works also for small changes Leontief in final demand: Inverse or just Leontief Matrix 1 @ (I A ) F ! X
52
I = the Identity Matrix
Answering our Question

What will be the impact on production of a Rs10 rise in demand for manufactures?
X ! (I A )1 F 1.41 0.78 10 ! 0.35 1.30 0 14.09 ! 3.49 Required change in output of agriculture
Required change in output of manufacturing
53
Adding the HH to the IO Table

Divide demand into Endogenous components Exogenous
Intermediate Demand Manuf Agric Manuf Agric Payments to HH Value Added Other Payments Total Cost 150 200 270 550 280 900 500 100 330 400 70 1000 950 600 350
54
Final Demand HH Other 250 150 100 700 450 250
Gross Output 900 1000 600 950 350
The Algebra of an IO model extended with households

Intermediate Demand Manuf Manuf Agric Payments to HH a11X1 a21X1 h31X1 Agric a12X2 a22X2 h32X2 Final Demand HH h13Yh h23Yh Other F1 F2 X1 X2 Yh Gross Output
a11 a12 h13 X1 F1 X1 a21 a22 h23 X2 F2 ! X2 h31 h2 0 Yh 0 Yh
BX F ! X
(I B ) 1 F ! X
55
Extended Output and Income Multipliers compared with IO

2.78 2.49 2.56 (I B ) 1 ! 1.91 3.24 2.90 1.47 1.81 2.73
SAM output multiplier for Sct1 = 2.78 + 1.91 = 4.69 IO output multiplier?
(I A )
1
1.41 0.78 ! 0.35 1.30
a11 a12 h13 X1 F1 X1 a a22 h23 X2 F2 ! X2 21 h31 h2 0 Yh 0 Yh
Note: HH income multiplier = 1.47
(I B ) F ! X
56
1
Expenditure columns
Activates C1 Activates R1 Commodities R2 Intermedia te demand Valu added Factor payment to households Sales taxes and import tariffs Direct taxes Private saving Import payment (M) Gross output Total supply Total factor spending Total household spending Governme nt expenditur e Total investment spending Foreign exchange inflow Fiscal surplus Social transfers Foreign remittance s Foreign grants and loans Current account balance Commoditi es C2 Domestic supply Factors C3 Household s C4 Governme nt C5 Saving and investment C6 Rest of world C7 Total Activity income Consumpti on demand (C) Recurrent spending (G) Investment demand (I) Export earning (E) Total demand Total factor income Total household income Governme nt income Total saving Foreign exchange outflow
Income rows
Factors R3 Households R4
Government R5 Saving and investment R6 Rest of world R7
Total
57
58
How we can run away from this ,,, ? By using some special software; GAMS, Matlab
59
Conclusion
A social accounting matrix (SAM) is a technique related to national income accounting, providing a conceptual basis for examining growth and distributional issues within a single analytical framework. It can be seen as a tool for the organization of information in a single matrix of the interaction between production, income, consumption and capital accumulation. SAMs can be applied to the analysis of the interrelationships between structural features of an economy and the distribution of income and expenditure among household groups.
60
Conclusion
SAM models have at least two major weaknecs. First, prices are fixed, and do not adjust to reflect real . Second, the results of the simulations vary greatly depending on the assumptions made about which accounts are exogenous and which endogenous. SAMs can be used for some simple policy simulations and impact analysis and it can be used as a modeling device in its own right or serve as a basis for other modeling strategies it has been used to reconcile the national income, social accounts and I-O accounts within a unified statistical. in SAM we are dealing with secondary data and we have to trust on data sources which generally calculated by governments institutions. Computing the SAM is very complicated and time using, to 61 avoid mistakes we need to use some propitiate statistic software.
References
ANONYMOUS ,1981,What is a SAM? A Laymans Guide to Social Accounting Matrices, the World Bank, U.S.A. ANONYMOUS, 1999, Handbook of Input-Output Table, United Nations, New York. BREISINGER, C., AND THOMAS, M. ANDTHURLOW, J., 2010, Social Accounting Matrices and Multiplier Analysis, International Food Policy Research Institute, U.S.A. GEDIK, M. A., 2011, A Comparative Analysis of Turkish Social Accounting Matrices for 1998 and 2002, International Research Journal of Finance and Economics, 75 (1). KORONCZI, K., 2004, Supply and Use Table, Input-Output, and a 2000 Social Accounting Matrix for the Slovak Republic, Draft, Nagoya University, Japan. NWAFOR, M., 2010, a 2006 Social Accounting Matrix for Nigeria: Methodology and Results, International Food Policy Research Institute, U.S.A. PAYATT, G. AND, ROUND, I. J., 1985, Social Accounting Matrices: A Basis for Planning, the World Bank, U.S.A. RUTHERFORD, T. AND PALTSEV, S., 1999, From an Input-Output Table to a General Equilibrium Model: Assessing the Excess Burden of Indirect Taxes in Russia, Draft, University of Colorado, U.S.A. SALUJA, M. R. AND YADAV, B., 2006, Social Accounting Matrix for India 2003-04, India Development Foundation, India. . SLOMAN, J., 2006, Economics, sixth edition, Prentice Hall, England. . http://en.wikipedia.org .
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Thank you
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Social Accounting Matrix (SAM) In Policy Analysis

Dr. Sherko Soltanpanahi sherko2003@gmail.com

'productive' dimension understanding the structure of an economy.

'distributional ' dimension

SAMs are designed as a means of characterizing and

 By construction, a SAM summarizes the transactions (including

Source: Manson, N.(2010) and http://en.wikipedia.org

Input- out put Table

CIRCULAR FLOF OF INCOM

Source: Rutherford, T. and Sergey P. (1999)

CIRCULAR FLOF OF INCOM

within which the full circular flow of

CIRCULAR FLOF OF INCOM

Source: Manson, N.(2010)

Wages & Rents

Domestic Private Savings

Recurrent spending (G)

Investment Demand (I) Capital in flow

Rest of the World

Input- out put table

Source: Rutherford, T. and Sergey P. (1999)

Input- out put table

Input- out put table

Domestic production (1,.. i..n)

Impost (1, ..i..n) Valu added

Domestic production (1,.. i..n)

Impost (1, ..i..n) Valu added

Matrix C gives the information on total domestic production.

Domestic production (1,.. i..n)

Impost (1, ..i..n) Valu added

An I-O table shows only the

relationship between production accounts and the other accounts

Matrix H is normally empty

Social Accounting Matrix

flow of funds from a column account to a row account

Source: Breisinger, C. et al, (2010).

Activities and commodities

Factors R3 Households R4 Government R5 Saving and investment R6 Rest of world R7

Total saving Foreign exchange outflow

Source: Rutherford,C. et al,Sergey P. (1999) Source: Breisinger, T. and (2010).

intermediate demand is a payment from activities to commodities [R2-C1]

Factors R3 Households R4 Government R5 Saving and investment R6 Rest of world R7

Total saving Foreign exchange outflow

Source: Rutherford,C. et al,Sergey P. (1999) Source: Breisinger, T. and (2010).

Adding together value-added and intermediate demand gives gross output.

Factors R3 Households R4 Government R5 Saving and investment R6 Rest of world R7

Total saving Foreign exchange outflow

Source: Rutherford,C. et al,Sergey P. (1999) Source: Breisinger, T. and (2010).

Factors R3 Households R4 Government R5 Saving and investment R6 Rest of world R7

Total saving Foreign exchange outflow

Source: Rutherford,C. et al,Sergey P. (1999) Source: Breisinger, T. and (2010).

Final demand for commodities consists of household consumption spending [R2-C4],

government consumption, or recurrent expenditure [R2-C5]

Factors R3 Households R4 Government R5 Saving and investment R6 Rest of world R7

Total saving Foreign exchange outflow

Source: Rutherford,C. et al,Sergey P. (1999) Source: Breisinger, T. and (2010).

gross capital formation or investment [R2-C6]

and export demand [R2-C7]

Factors R3 Households R4 Government R5 Saving and investment R6 Rest of world R7

Total saving Foreign exchange outflow

Source: Rutherford,C. et al,Sergey P. (1999) Source: Breisinger, T. and (2010).

Factors R3 Households R4 Government R5 Saving and investment R6 Rest of world R7

Total saving Foreign exchange outflow

Source: Rutherford,C. et al,Sergey P. (1999) Source: Breisinger, T. and (2010).

SAMs are designed as a means of characterizing and

By construction, a SAM summarizes the transactions (including

within which the full circular flow of

a11 a12 h13 X1 F1 X1 a21 a22 h23 X2 F2 ! X2 h31 h2 0 Yh 0 Yh

a11 a12 h13 X1 F1 X1 a a22 h23 X2 F2 ! X2 21 h31 h2 0 Yh 0 Yh