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NDP: Net domestic product is defined as "gross domestic product (GDP) minus depreciation of capital", [6] similar to NNP. GDP per capita: Gross domestic product per capita is the average market value rendered per person. GNI per capita: Gross national income per capita is related to average income per person and mean income.
Although the net national product is a key identity in national accounting, its use in economics research is generally superseded by the use of the gross domestic or national product as a measure of national income, a preference which has been historically a contentious topic (see e.g. Boulding (1948) [3] and Burk (1948) [4]).
In national income accounting, net national income (NNI) is net national product (NNP) minus indirect taxes. [1] Net national income encompasses the income of households, businesses, and the government.
Net domestic product accounts for capital that has been consumed over the year in the form of housing, vehicle, or machinery deterioration. The depreciation accounted for is often referred to as " capital consumption allowance " and represents the amount of capital that would be needed to replace those depreciated assets. [ 3 ]
The business income cited in the social account is not the business income reported in profit and loss statements, but an economic income measure which is derived from accounting business income. Thus, the criticism centres both on the valuation principles used, and the additional items included in the aggregate, which are not directly related ...
Business current transfer payments (net) 77.70 Current surplus of government enterprises: 9.50 Equals: national income (NI) 9,679.60: Statistical discrepancy: 25.60 Equals: net national product (NNP) 9,705.20: Consumption of fixed capital: 1,353.90 Equals: gross national product (GNP) 11,059.10: Income receipts from the rest of the world: 273.90
Economic depreciation over a given period is the reduction in the remaining value of future goods and services. Under certain circumstances, such as an unanticipated increase in the price of the services generated by an asset or a reduction in the discount rate , its value may increase rather than decline.
The difference between basic prices and final prices (those used in the expenditure calculation) is the total taxes and subsidies that the government has levied or paid on that production. So adding taxes less subsidies on production and imports converts GDP(I) at factor cost to GDP(I) at final prices.