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National Income Accounting

Definition

A variety of measures of national income and output are used in economics to estimate total economic activity in a country or region, including gross domestic product, gross national product, net national income, and adjusted national income also called as NNI at factor cost. All are specially concerned with counting the total amount of goods and services produced within the economy and by different sectors. The boundary is usually defined by geography or citizenship, and may also restrict the goods and services that are counted. For instance, some measures count only goods & services that are exchanged for money, excluding bartered goods, while other measures may attempt to include bartered goods by imputing monetary values to them.

What is 'National Income Accounting'

National income accounting is a bookkeeping system that a national government uses to measure the level of the country's economic activity in a given time period. Accounting records of this nature include data regarding total revenues earned by domestic corporations, wages paid to foreign and domestic workers, and the amount spent on sales and income taxes by corporations and individuals residing in the country.

Use in Economic Analysis

The information collected through national income accounting can be used for a variety of purposes, such as assessing the current standard of living or the income distribution within a population. Additionally, national income accounting provides a method for comparing activities within different sectors in an economy, as well as changes within those sectors over time. A thorough analysis can assist in determining overall economic stability within a nation.

National Income Accounting and Economic Policy

The quantitative information associated with national income accounting can be used to determine the effect of various economic policies. Considered an aggregate of the economic activity within a nation, national income accounting provides economists and statisticians with detailed information that can be used to track the health of an economy and to forecast future growth and development.

Inaccuracies in National Income Accounting

The accuracy of analysis relating to national income accounting is only as accurate as the data collected. Failure to provide the data in a timely fashion can render it useless in regards to policy analysis and creation.

Explaining 'National Income Accounting'


Further Reading


The challenges of socio-economic accounting
www.jstor.org [PDF]
… For the most part, the first investigations on the subject of national income accounting were carried out by academic economists and institutions … Page 41. National Income Accounting and its Relation to Economic Policy 9 classification that permits the making of a …

Market value vs. financial accounting measures of national savingMarket value vs. financial accounting measures of national saving
www.nber.org [PDF]
… For the most part, the first investigations on the subject of national income accounting were carried out by academic economists and institutions … Page 41. National Income Accounting and its Relation to Economic Policy 9 classification that permits the making of a …

Outside the economy: Women's work and feminist economics in the construction and critique of national income accountingOutside the economy: Women's work and feminist economics in the construction and critique of national income accounting
www.tandfonline.com [PDF]
… For the most part, the first investigations on the subject of national income accounting were carried out by academic economists and institutions … Page 41. National Income Accounting and its Relation to Economic Policy 9 classification that permits the making of a …

National accounting, government budgeting and the accounting disciplineNational accounting, government budgeting and the accounting discipline
onlinelibrary.wiley.com [PDF]
… For the most part, the first investigations on the subject of national income accounting were carried out by academic economists and institutions … Page 41. National Income Accounting and its Relation to Economic Policy 9 classification that permits the making of a …

Financial deepening and economic development of Nigeria: An empirical investigationFinancial deepening and economic development of Nigeria: An empirical investigation
papers.ssrn.com [PDF]
… For the most part, the first investigations on the subject of national income accounting were carried out by academic economists and institutions … Page 41. National Income Accounting and its Relation to Economic Policy 9 classification that permits the making of a …

Socio-economic accountingSocio-economic accounting
search.proquest.com [PDF]
… For the most part, the first investigations on the subject of national income accounting were carried out by academic economists and institutions … Page 41. National Income Accounting and its Relation to Economic Policy 9 classification that permits the making of a …


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