National income

The national income ( english income nationally ; formerly GNP ) is an economic indicator that the economic performance of an economy within an accounting period reflects.

General

An analysis of the economic cycle shows the interdependence of national income with national income and demand . If the demand for national income is greater than the supply of national income, the volume of production increases and so does the national income from which demand arises. With rising (real) national income, employment also increases if the capital stock remains constant and production technology does not change. With full employment (i.e. 100% utilization of the production potential ) only the nominal national income (and national income) can increase, but real national income and national income cannot. In the case of nominal national income, inflation or deflation are not taken into account, in real income they are included.

species

A distinction must be made between gross national income and net national income . The net national income at factor cost is identical to the national income, while the gross national income includes gross investment. If one subtracts the depreciation from the gross national income , one gets the net national income:

   Bruttonationaleinkommen (BNE)    
   - Abschreibungen auf Investitionen
   = Nettonationaleinkommen (NNE)

Since the national income is made up of a large number of different goods and services , these are valued and summarized at market prices , so that one speaks of national income at market prices .

National accounts

The market for national income is the goods market on which consumer and capital goods are exchanged for money . Thus the national income does not account for no monetary consideration rendered work ( domestic and family work , do it yourself -work, favors , volunteer or charitable activities ). The drug-related crime , prostitution and the trafficking of alcohol and tobacco are not included.

If, for the sake of simplicity, it is assumed that only the corporate sector produces and keeps its production techniques and production factors constant, the amount of the capital stock and labor output limit the amount of national income. If it is also assumed that the capital stock is also available and investments do not result in any capacity expansion effects, then the dependence of the national income on the volume of work ( measured in terms of working hours ) becomes apparent .

From the production approach results in the gross national income as follows:

  Bruttoproduktionswert
  − Vorleistungen
  = Bruttowertschöpfung
  + Gütersteuern
  − Gütersubventionen
  = Bruttoinlandsprodukt (BIP)
  − Einkommen der Ausländer im Inland
  + Einkommen der Inländer im Ausland
  = Bruttonationaleinkommen

The starting point is the gross production value as the sum of all domestically produced goods and services, from which all intermediate consumption and subsidies on goods are deducted so that double entries (intermediate consumption) and transfer payments (subsidies) are not taken into account. The gross national income is obtained by subtracting from the gross domestic product the primary income that has flowed to the rest of the world and, conversely, adding the primary income that domestic economic agents have received from the rest of the world.

National income and employment determine the upper limit for the maximum realizable national income, i.e. the production capacity of an economy.

The usage calculation shows that the net national income is made up of consumer goods and capital goods : ${\ displaystyle Y}$ ${\ displaystyle C}$ ${\ displaystyle I}$

{\ displaystyle Y = C + I}

.

European system of national accounts

Since the conversion to the European System of National Accounts (EVSG 1995), the term national product is no longer used and has been replaced by the term national income. The terms gross national product and net national product used previously were replaced in 1999 by the terms gross national income and net national income. According to Art. 3 Council Regulation (EC) No. 1287/2003 of July 15, 2003 on the harmonization of gross national income at market prices , statistics are to be compiled, updated and made available to Eurostat by all EU member states . From a European point of view, the gross national income is important because it represents a basis for payments by the member states to the budget of the European Union (EU) and therefore requires the GNI data to be comparable. Domestic product and national income can be determined not only from the goods side, i.e. via the production or use of goods and services, but also from the income side. However, due to a lack of original information on corporate profits or the operating surplus of companies, this is not possible in Germany. The level and development of the GDP is only about the genesis and the use of accounting determined.

Individual evidence

↑ Renate Neubäumer / Brigitte Hewel (eds.), Volkswirtschaftslehre , 2001, p. 239
↑ Renate Neubäumer / Brigitte Hewel (eds.), Volkswirtschaftslehre , 2001, p. 239
↑ Hartwig Bartling / Franz Luzius / Frank Fichert, Grundzüge der Volkswirtschaftslehre , 2019, p. 155
↑ Horst Siebert / Oliver Lorz, Introduction to Economics , 1969, p. 218
↑ Horst Siebert / Oliver Lorz, Introduction to Economics , 1969, p. 218
↑ Hartwig Bartling / Franz Luzius / Frank Fichert, Grundzüge der Volkswirtschaftslehre , 2019, p. 160
↑ Federal Statistical Office , National Accounts: Domestic Product and National Income according to ESA 2010, Methods and Basics , Fach Series 18 series p. 30, 2016, p. 502
↑ Renate Neubäumer / Brigitte Hewel (eds.), Volkswirtschaftslehre , 2001, p. 260
↑ Federal Statistical Office, National Accounts: Domestic Product and National Income according to ESA 2010, Methods and Basics , Fach Series 18 series p. 30, 2016, p. 32
↑ Renate Neubäumer / Brigitte Hewel (eds.), Volkswirtschaftslehre , 2001, p. 238, FN 3
↑ Federal Statistical Office, National Accounts: Domestic Product and National Income according to ESA 2010, Methods and Basics , Fach Series 18 series p. 30, 2016, p. 27
↑ Federal Statistical Office, National Accounts: Domestic Product and National Income according to ESA 2010, Methods and Basics , Fach Series 18 series p. 30, 2016, p. 276

[1] Renate Neubäumer / Brigitte Hewel (eds.), Volkswirtschaftslehre , 2001, p. 239

[2] Renate Neubäumer / Brigitte Hewel (eds.), Volkswirtschaftslehre , 2001, p. 239

[3] Hartwig Bartling / Franz Luzius / Frank Fichert, Grundzüge der Volkswirtschaftslehre , 2019, p. 155

[4] Horst Siebert / Oliver Lorz, Introduction to Economics , 1969, p. 218

[5] Horst Siebert / Oliver Lorz, Introduction to Economics , 1969, p. 218

[6] Hartwig Bartling / Franz Luzius / Frank Fichert, Grundzüge der Volkswirtschaftslehre , 2019, p. 160

[7] Federal Statistical Office , National Accounts: Domestic Product and National Income according to ESA 2010, Methods and Basics , Fach Series 18 series p. 30, 2016, p. 502

[8] Renate Neubäumer / Brigitte Hewel (eds.), Volkswirtschaftslehre , 2001, p. 260

[9] Federal Statistical Office, National Accounts: Domestic Product and National Income according to ESA 2010, Methods and Basics , Fach Series 18 series p. 30, 2016, p. 32

[10] Renate Neubäumer / Brigitte Hewel (eds.), Volkswirtschaftslehre , 2001, p. 238, FN 3

[11] Federal Statistical Office, National Accounts: Domestic Product and National Income according to ESA 2010, Methods and Basics , Fach Series 18 series p. 30, 2016, p. 27

[12] Federal Statistical Office, National Accounts: Domestic Product and National Income according to ESA 2010, Methods and Basics , Fach Series 18 series p. 30, 2016, p. 276