Net national income
The net national income ( NNE , until the introduction of the European system of national accounts in 1995 called net national product ( NSP )) is a statistical quantity and economic indicator of the national accounts , which is supposed to characterize the economic performance of an economy in a certain accounting period (usually one year) and above all serves as an income indicator.
General
The net national income is a sub-form of the national income . A distinction is made here (similar to the domestic product ) between net national income at market prices (primary income) and net national income at factor costs ( national income ). If only "net national income" is mentioned without a corresponding specifying addition, what is usually meant is that at market prices, i.e. primary income.
Primary income
The primary income (= net national income at market prices) is derived from the gross national income, also valued at market prices, by deducting depreciation or from the net domestic product at market prices by adding the balance of income from work and property that is paid abroad or received from abroad:
National income
The national income (= net national income at factor costs ) is calculated from the net national income at market prices by subtracting taxes on goods ( taxes on production and imports) and adding the subsidies, or from the net domestic product at factor costs again by adding the balance of earned income and property income:
Disposable income of the economy
Finally, if one increases the net national income at market prices (primary income) by the transfers (transfers) from the rest of the world and reduces it by the transfers to the rest of the world, one obtains the disposable income of the economy.
In the figure , the gross national income is set equal to 100%. Without the depreciation (top size, pink), the net national income is at market prices (primary income). The net national income at market prices without the balance of taxes on goods and subsidies on goods (second from the top, gray and white tiles) gives the net national income at factor costs (national income).