Nd definition. National potential income. II. Sismondi's views on national income and capital

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INTRODUCTION

1. NATIONAL INCOME AS A MACROECONOMIC INDICATOR

CONCLUSION

LIST OF USED LITERATURE

APPENDIX

INTRODUCTION

An accurate estimate of national income is not possible due to the lack of statistical data. However, even an approximate hypothesis on this problem will be appropriate here as a means of generalizing our understanding of reality. Strictly speaking, any estimate of the annual income of a nation is based on an estimate of the following items:

1 The volume of the country's gross output, including the total volume of materials produced and processed during the year.

2 The volume of net output, for the calculation of which we must subtract from the volume of gross output that part of the produced materials that is used for the further reproduction of the country's capital. This grand total is the national income.

3 Income per capita, which is obtained by dividing the net output by all citizens of the country: producers, intermediaries and those members of society who are usually called the "leisure classes".

The relevance of the course work consists of several components. First of all, it is due to the importance for the economy of such an indicator as national income (NI). Methods for calculating this indicator (by income, by expenditure, by value added) allow us to judge the well-being of a particular country. Secondly, we note that the theory of equitable distribution implies the distribution of the country's ND in accordance with the interests of society.

The purpose of the course work is to find out the value of national income in the system of national accounts and its distribution and redistribution.

From this goal, the main objectives of the course work follow:

Reveal the essence and main indicators of national income, understand the main methods of its calculation; get acquainted in a general way with the theory of fair distribution; to understand its essence, problems and significance for modern macroeconomics;

Compare ND of Russia and foreign countries;

These goals and objectives form the structure of the course work, which consists of an introduction, four chapters (two paragraphs each), a conclusion and a list of references.

1. NATIONAL INCOME AS A INDICATOR

National income is a macroeconomic indicator that characterizes the value newly created in the branches of material production.

The economic well-being of the society of a given country is made up of various elements, the rational use of which reflects many different indicators.

The economic activity of the country is the material basis for all other spheres of society - political, social, cultural, etc.

This determines the importance of its continuous improvement for the creation of national wealth. Thus, national wealth is made up of a set of material goods created by the labor of previous and current generations and involved in the process of reproduction of the natural resources that society has at its disposal.

The volume of national wealth is determined, as a rule, in value terms. To study the dynamics of the physical volume of national wealth and its individual elements, it is necessary to use comparable prices.

Funds are the elements of the national economy. Among them, fixed and current funds can be distinguished. A large economic dictionary gives the following definitions of these elements.

Fixed assets include a part of the national property created by social labor, located in various forms of ownership, which for a long time is repeatedly or constantly used in the economy in an unchanged physical form, gradually transferring its value to the created products and services. The main ones include objects with a service life of at least a year and a cost not less than that established in the regulatory order. The totality of fixed assets that directly affect the object of labor (machinery, equipment, tools, etc.) is called the active part of fixed assets. The passive part includes fixed assets, through which conditions are provided for the normal course of the production process (buildings, structures, etc.). Fixed assets should be grouped according to the form of ownership, territory, sectors of the economy. Data on the availability of fixed assets are used in assessing the capital-labor ratio, capital productivity, capital-capacity, capital-equipment of production.

Working capital is a part of the production assets of associations, enterprises, organizations, entirely consumed in one production cycle and fully transferring its value to the manufactured product.

They include inventories (raw materials, fuel, spare parts, tools, household goods, seeds, feed and fodder, fattening animals, young animals, etc.), work in progress and semi-finished products of own production. The consumption of working capital in production is an important part of the cost of production and the basis of intermediate consumption. The peculiarity of this part of production assets is that they participate in one production cycle, modify their natural-material form, and their value is completely transferred to the cost of manufactured products and services.

Thus, two criteria underlie the division of national funds into fixed and circulating: the criteria for technical and economic transformation, i.e., participation in production cycles in terms of transforming or maintaining their technical structure, and the method of cost recovery.

The level of economic development of a society and its well-being can reflect various indicators. Of particular importance among them, undoubtedly, belongs to the annual indicator of the volume of manufactured products, i.e. goods and services. For this, the indicator of gross domestic product (GDP) is used, which is defined as the total, or aggregate, market value of the total volume of final production of goods and services produced in the territory of a given country in one year, regardless of whether the factors of production are owned by residents of this country or owned by foreigners (non-residents).

The terms "gross" and "domestic" product mean that we are talking here about the total, aggregate output produced within the entire economy.

In the definition of GDP, in addition to the monetary expression of the market value of goods and services, other ways of measuring the volume of production are also acceptable, for example, in physical quantities (tons, meters, pieces, etc.). But only the monetary dimension makes goods and services different in nature and purpose comparable. Only by measuring the value of goods and services in money do we get the opportunity to judge the performance indicators of economic activity of both the enterprise and society as a whole for a certain period, in particular, for a year.

Under the final production of goods in the definition of GDP, it should be understood that the calculation of GDP includes only final goods intended directly for consumption, i.e. all intermediate goods used to produce final goods are excluded. Therefore, for example, GDP does not include the cost of grain, flour, yeast, which are necessary to obtain the final goods of bakery production. Otherwise, the value of intermediate goods would be counted twice, since it is included in the cost of the final product, in which case a double count would arise. Intermediate goods differ from final goods in that they are used to produce other goods. Final goods and services are bought for direct consumption.

The next macroeconomic indicator is the gross national product (GNP), which is defined as the market value of the entire volume of final goods and services produced in the economy over a certain period of time (usually a year). GNP measures the value of products produced by factors of production owned by citizens of a given country (residents), including those in other countries.

Three ways to measure GNP (GDP):

a) by expenses (end-use method);

b) value added (production method);

c) by income (distributive method).

When calculating GNP by expenditures, the expenditures of all economic agents using GNP, households, firms, the state and foreigners (export expenditures) are summed up. In fact, we are talking about the aggregate demand for the produced GNP. Total costs can be decomposed into several components:

GNP \u003d C + I + G + Xn,

where C - personal consumption expenditures, including household expenditures on durable goods and current consumption, on services, but not including expenditures on the purchase of housing;

I - gross investment, including production capital investments or investments, in fixed production assets (costs of firms for the acquisition of new production plants and equipment).

Among the components of GNP, consumer spending (C) is usually the most painful, and investment spending (I) is the most volatile.

For the economy as a whole, the sum of all value added is equal to the value of final goods and services. The production method for calculating GNP (GDP) in Russia is the main one, since data on the production of goods and services is the most accessible and up-to-date information collected by the State Statistics Committee on the basis of statistical reporting of enterprises.

When calculating GNP by income, all types of factor income (wages, rent, interest, and so on) are summed up, as well as two components that are not income: depreciation and net indirect taxes on business, i.e. taxes minus subsidies. As with other methods of calculation, in this case there is a relationship between GDP and GNP;

GNP = GDP + net factor income from abroad

Net factor income from abroad is equal to the difference between the income received by citizens of a given country abroad and the income of foreigners received in the territory of this country.

The largest income item in the GNP is the remuneration for the work of employees Z. This type of income includes: wages of employees of state and private enterprises, as well as various supplements to wages (contributions of entrepreneurs for social insurance, medical care, private funds social security, etc.).

Income received by the owners of land, buildings and structures - rent payments R.

The income of the owners of money capital - percentage P.

R. corporate profits and property income.

In the system of national accounts, as part of corporate profits, the following are distinguished: taxes on corporate profits (levied by the state); dividends - part of the profit received by shareholders in the form of income on shares; retained earnings of corporations (directed to investments in means of production, securities, etc.). Property income includes profits from the non-corporate business sector.

The composition of the costs of firms includes funds not related to the payment of income - these are depreciation charges A. and indirect taxes on business N.

The calculation of GNP by income can be represented as follows:

GNP \u003d Z + R + P. + R. + A + N

GNP, calculated at current market prices, estimates the nominal value of the total annual output. In order to take into account the impact of inflation on the value of nominal GNP, an indicator is used that gives a quantitative assessment of changes in the level of average prices for goods and services. This is the GNP deflator. It takes into account price changes for a wide range of consumer and investment goods and services.1

The definition of real GNP is necessary to assess the growth rate of the current output in relation to the base year, i.e. to determine the economic dynamics of national production.

In addition to GDP and GNP, there are a number of other important indicators of income and product. The GNP indicator does not give an accurate idea of the volume of output produced in a year, since it also includes depreciation expenses necessary to replace the consumed capital (worn-out machinery and equipment). Therefore, the economy uses the indicator of net national product (NNP), which is determined by subtracting deductions for consumed capital (depreciation deductions) from GNP.

NNP \u003d GNP - depreciation deductions

To understand the essence of national income (NI), we recall that this income is paid by producers to suppliers of factors of production or resources. Among them, the main role is played by labor resources, for which the population receives income in the form of wages. Other components of ND are income received in the form of interest on capital, rent and profit. Thus, from the point of view of the population, NI represents the total income received by resource suppliers from participating in current production. Since indirect taxes on business are not involved in the sphere of production, their amount should be deducted from GNP.

Thus, the national income is an important indicator of the activity of the nation's economic activity, and therefore, at present, statistical reporting on it, on the recommendation of the UN, has begun to be introduced in all countries.

National income is the basis of personal income. Personal income (income received) and IA (earned income) differ from each other because part of the income earned by labor - social security contributions (social security taxes), corporate income taxes and corporate retained earnings - do not actually fall into households. On the contrary, the part of the income that ends up in households, such as transfer payments, is not the result of labor. It is useful to recall that transfer payments consist of such types of payments as

1 old-age and accident insurance payments, as well as unemployment benefits based on social programs;

2 assistance payments;

3 Miscellaneous veterans benefits such as education grants and disability benefits;

4 interest payments paid to governments and consumers;

5 private assistance payments.

In passing from national income as a measure of earned income to personal income as an indicator of income actually received, we must subtract from the NI three types of income that are earned but not received, and also add income received, but not the result of current labor activity. This is done in the following way:

National income (earned income)

Social Security Contributions

Corporate income taxes

Corporate retained earnings

Transfer payments, we receive

Personal income (received income)

The disposable income is at the personal disposal of the members of the society. Its value can be obtained by subtracting individual taxes (income, personal property, inheritance) from personal income. Disposable personal income is used by the household for consumption and savings.

The functional distribution of national income means the way in which the national income is distributed among those who perform various functions in the economy (provides the economy with various types of resources), i.e. division of ND into wages and salaries, self-employed income, corporate profits, interest and rent.

National expenditures include expenditures of the state budget, expenditures of enterprises of all forms of ownership and expenditures of households.

The composition and structure of state budget expenditures are determined on the basis of specific socio-economic conditions and economic policy objectives. State expenditures provide for allocations for innovation and investment activities related to capital investments, both in production and non-production areas, and other expenses for expanded reproduction, as well as restoration and environmental protection. The purpose of these expenses is the socio-economic development of the country or its individual territorial entities.

A distinction should be made between the development budget and the current expenditure budget. In the Russian Federation, such a distinction is made without fail. The expediency of allocating such budgets arises when it is necessary to take into account differences in approaches to the formation and evaluation of the expenditure part of the budget, depending on the direction of funds for these purposes. At the same time, they proceed not only from the need for priority financing of current expenditures, but also from the recognition of the importance of ensuring the social and economic development of the country and its individual territorial entities, as well as the choice of territorial directions for such development.

An element of national spending is the investment costs of enterprises for the production of products, the consumption of raw materials, materials, fuel, electricity; wages of workers, employees, collective farmers; depreciation of fixed assets and so on.

National wealth estimates also add a new dimension to economic analysis and enable better economic forecasting and better policy making.

In this way:

National resources are the totality of all natural, labor, capital and financial resources used in the economic activity of the country, as well as monetary capital.

GNP is one of the most important indicators of the welfare of society, it is defined as the market value of final goods and services produced in the economy in a year.

National income is an indicator of the economic activity of a nation and the basis of personal income.

1.1 The concept of calculating national income

national income cost macroeconomic

National income - calculated in monetary terms, the value of the total product newly created in the country during the year, representing the income generated by all factors of production (land, labor, capital, entrepreneurship). The country's national income is equal to the gross national product minus depreciation (depreciation of fixed assets) and indirect taxes. On the other hand, national income can be defined as the sum of all incomes for the year in the form of wages, industrial and commercial profits, interest on invested capital and land rent. The national income is one of the most important generalizing indicators of the country's economic development. National income (NI) shows how much it costs society in terms of resource consumption to produce a given volume of final output.

The only component of the net national product (NNP) that does not reflect the current contribution of economic resources is indirect taxes on business, because in exchange for taxes, the state does not directly invest anything in production.

In this case, the state cannot be regarded as a supplier of economic resources (factors of production). Thus, in order to determine the indicator of the total volume of wages, rents, interest and profits received in the course of production of the gross national product (GNP) of a given year, indirect taxes on business should be deducted from the NNP:

ND = NNP - indirect taxes on business

The country's national income is equal to the gross national product minus depreciation (depreciation of fixed assets) and indirect taxes. On the other hand, national income can be defined as the sum of all incomes for the year in the form of wages, industrial and commercial profits, interest on invested capital and land rent.

The national income is one of the most important generalizing indicators of the country's economic development.

The national income is created by workers in the sphere of material production and is called the produced national income.

The used national income is defined as the sum of consumption and accumulation funds, it is less than the produced national income by the amount of losses in the national economy, as well as by the balance of foreign trade.

In kind, it is divided into consumer goods and those means of production that are obtained as a result of the expansion of production.

In terms of value, the national income is divided into the value of the necessary product and the value of the surplus product. Its growth depends on two main factors: an increase in the mass of labor in the sphere of production, i.e. from the growth in the number of production workers, and the growth of labor productivity.

National income is calculated in actual prices of each year, and comparable prices are used to study its dynamics.

The principles of calculation and reflection in the national accounts of national income are different in different countries. In addition, the statistical bodies of the United Nations have developed a standard system of national accounts and a methodology for their construction, in principle ensuring the comparability of data on national incomes of countries using this system.

2. CALCULATION OF NATIONAL INCOME

The national product (NP) and national income (NI) are the values of the exchange of final results of activity between the sphere of production and the sphere of consumption for some reporting period (usually a year).

The national income (NI) is the total income of the sphere of consumption, consisting of the income of the production contingent in the form of wages (including personal income of a private entrepreneur), dividends, interest income, as well as taxes and various kinds of fees received by the state budget for state-provided services (protection of external borders, property rights, regulation of the conditions of interaction between the spheres of production and consumption, as well as within them).

If the state is engaged in production activities (utilities, transport, paid education and medicine, notary offices, courts and other institutions) and receives additional income for its goods and services from entrepreneurship and the population, then all such activities belong to the sphere of production, i.e. . the state's revenues from it are the revenues of the sphere of production, not the sphere of consumption. But the wages of workers in these government departments are classified as income in the sphere of consumption.

Within the sphere of consumption, there is a partial redistribution of income (shown on the right at the top of the vertical axis). From wages and some other incomes of the population, income tax is paid to the state budget. The total state budget revenue from all tax revenues is spent: on paying salaries to state budget employees, including the army, on transfer payments and on purchasing goods and services from the production sector for the needs of the state (see along the axes of the second sector).

The income of the manufacturing sector may differ from the income of the consumption sector, i.e., from NI by the amount of savings of the population, the deficit or surplus of the state budget, net exports and net credit of the manufacturing sector. The difference between NI and NP depends on the degree to which the state budget deficit, net exports, savings of the population and net loans that arose in a given year are used to create net investment benefits, i.e. for net investment. Further in the text, the income of the sphere of production (as opposed to ND) will be denoted by the term "national product" (NP).

This principle of calculating the national income or national product differs from the methods currently used in statistics for finding the value of annual production.

Currently, the main indicator in the compilation of national accounts is the gross national product (GNP), which is calculated using the formula

GNP = C + Ig + G + Xn,

where C is personal consumption expenditure. This category includes all household expenditures for the purchase of consumer goods;

Ig - gross private domestic investment. This figure includes the production of all investment goods intended to replace the machinery, equipment and facilities that are consumed in production in the current year, plus any net additions to the stock of capital in the economy. In essence, gross investment includes both the amount of recovery (amortization) and the increase in investment (net investment);

G - public procurement of goods and services. This group of expenditures includes all government expenditures on final products and services of enterprises in the manufacturing sector;

Xn - net export. It represents the amount by which foreign spending on domestic goods and services exceeds domestic spending on foreign goods and services.

The actual value of ND can also be defined as the difference between the total costs of the production sector, including all intermediate material costs, and its purchases from enterprises in the same sector and abroad of goods and services for industrial current consumption, as well as minus depreciation deductions, or, which is one and the same as the difference between the same total costs and purchases of goods and the same services in general, including investment goods.

Similarly, the actual value of NP can be calculated, i.e., as the difference between the total income of the production sector and its same purchases. Naturally, both ND and NP in these cases can be calculated only after the acts of sale and purchase have already taken place. By the way, the same method can be used to calculate ND and NP at the microeconomic and regional levels of the economy.

Various indicators are used to measure the national product: gross national product (GNP), gross domestic product (GDP), national income (ND), net national product (NNP).

GDP-measures the value of final products produced in the territory of a given country for a certain period.

GNP-the market value of final goods and services produced by factors of production owned by a given country, including in other countries for a certain period of time.

There are three ways to measure GDP (GNP):

1 Production - summing up the value added of all producers of goods and services in a given country. Value added-is the value created in the production process, not including the cost of consumed raw materials and materials.

2 Distributive (income) - the use of income streams of funds. Income is received by the owners of the factors of production. There are two types of income: labor and property (entrepreneurial). The main part of labor income is wages. Entrepreneurial income includes: rent (P), income from own (private) enterprise (Ds), corporate profits (Pc), including corporate income tax (CIT), net income (NPK), dividends (D); interest on deposits (%). This calculation method takes into account two components that are not related to payments: depreciation (A) - depreciation of capital and indirect taxes (Kn = customs duties, sales taxes, VAT):

In the analysis of the movement of income, the following phases are distinguished: income generation, primary distribution, redistribution, the formation of final (disposable) income, the use of disposable income to finance final consumption and savings. So, the net national product (NNP) is the actual volume of final products produced in a year, i.e. GNP excluding depreciation of factors of production:

NNP=GNP-A.

National income (NI) is the total income earned by the owners of factors of production (wages, interest on capital, rent):

ND \u003d NNP-Kn.

The incomes earned by the owner of each factor of production are always greater than those actually received, since the national income on the way to each owner of the factor of production undergoes changes - subtractions and additions. After making these amendments to the ND, another macroeconomic indicator is formed - personal income (PD):

LD \u003d ND-NPk - CHPK - contributions to social insurance-T,

where ND - national income;

NPK - corporate income tax;

NPC - net (retained) profit of corporations;

T - transfers (pensions, scholarships, allowances);

However, this amount is not fully used by the citizens of the country. Like the profits of entrepreneurs, personal incomes of citizens are subject to taxes, the most important of which is income (individual) tax (IN). And only after paying it, the remaining part of personal income is at the disposal of individuals - personal disposable income (personal income - PD):

PD \u003d ND - NPk - PKK - contributions to social. fear. T - IN,

where IN -- individual (income) taxes.

W Final consumption (by expenditure) - the sum of the expenditures of all economic agents, i.e., the total demand for the national product

GNP \u003d C + Ig + G + Xn,

where C - personal consumption expenditures, including household expenditures on durable goods and current consumption;

Ig - gross investment, including industrial capital investments in the main production fords, in housing construction. Gross investment is the sum of net investment (In) that increases the stock of capital in the economy and depreciation (A);

G - public procurement of goods and services for the construction and maintenance of budgetary organizations;

Xn - net export of goods and services abroad, calculated as the difference between exports (Ex) and imports (Im).

2.1 Methods of calculating national income

There are 2 approaches to measuring GNP that give the same result in the absence of errors in the calculations: the cost stream method and the income stream method. In the first case, spending on final goods by households, firms, the state and foreign consumers is summarized - that is, the components of the aggregate demand for the national product are identified:

One of the most significant national accounts identities:

Q = C + I + G + TB, where

Q - gross national product,

C - consumer spending (consumer demand): household spending on the purchase of goods produced domestically and supplied by import. These are expenditures on goods of current, short-term use (less than 1 year), consumer durables (more than 1 year) and services (goods that do not have the form of a material object at the time of sale and are consumed simultaneously with their creation). As the largest component of GNP in terms of spending (about 60%), consumer demand includes everything from bread to tennis lessons and cars. By the way, the investment of households in vehicles in the SNA is considered to be consumer spending, not investment.

I - gross private domestic investment (investment demand of enterprises and households):

final purchases of equipment, industrial premises, that is, elements of fixed capital;

housing investment (households buying their own home are considered investors);

investments in the growth of inventories (if these inventories are declining, then the value of investment in inventories is negative). The term "domestic" characterizes the investments of the inhabitants of this particular country, which, however, do not necessarily have to be directed to the purchase of domestic investment goods. Investments as an element of GNP, of course, do not include the purchase and sale of securities (fictitious capital): investment demand includes only additions to the physical stock of capital, but not the purchase of shares and bonds and not investments in so-called human capital (into those used in the production process people's knowledge and skills). Interestingly, while the purchase of flour by an individual is considered a consumer expenditure, a similar purchase by a store is considered an investment in inventory.

G - state (federal, regional, municipal) purchases: the total value of goods and services purchased by the federal government and local governments in their country and abroad. Such government demand includes the purchase of military equipment, school premises, parks, libraries, construction of roads, wages for military and civil servants, etc. Let us remind you that this does not include government transfer payments, adding which to government purchases, however, you can get the total amount of government spending in the structure of the state budget. In public procurement, government costs are usually cost-accounted, i.e. does not include much of the value added by the public sector. Formally, the argument here is the circumstance (highly controversial) that the bulk of public sector services (primary and secondary education, defense services, police maintenance, etc.) are provided to society free of charge. It is clear that part of government spending directed, say, to the construction of bridges, schools, is also actually an investment, and these investments in fixed capital should also be taken into account in the analysis.

TB - balance of trade (net exports): the difference between the volume of exports (characterizing the demand for domestic goods from foreigners) and imports of goods and services (part of domestic spending on the acquisition of foreign goods) as a designation of foreign demand for the product of this country (foreign purchases).

Subtracting imports is necessary to avoid double counting: households (C), firms (I), the state (G) also purchased imported goods, and therefore the figures in C + I + G exaggerate the final consumption of goods and services created by domestic producers. An alternative to the established practice of calculating GNP could be to immediately edit C,I,G and add the amount of exports to the resulting amount. But such calculations are very complicated, so it is more expedient to include the value of net exports in the aggregate. In this case, in the case of equilibrium in foreign trade, GNP = C + I + G. If exports are greater than imports, then the country acts as a "net exporter" in the world market, and GNP is greater than domestic spending. If, on the contrary, imports are greater than exports, then the country is a "net importer".

Obviously, what is spent by the consumer on the purchase of a product is received in the form of income by that which is the producer of this product. Buying (spending money) and selling (receiving money) are two sides of the same coin (transaction). Firms buy factors of production (labor, land, capital, entrepreneurial ability) from households. Accordingly, the following types of income included in GNP according to the income stream method are formed:

wages of employees: wages, salaries, bonuses, as well as some additional benefits (for example, contributions from entrepreneurs to the social insurance fund - primarily for the payment of pensions). It is the main component of GNP. This includes the income of the owners of non-cooperative enterprises (partnerships, small firms, small shops, etc.), which is their remuneration for the work invested in the business.

Rental income that is received - often purely conditionally - by the owners of land, premises, housing, etc. In particular, it includes conditional income on residential premises occupied by their owners, estimated on the basis of data on rent for similar premises. It also takes into account income from the ownership of patents, rights to develop subsoil, etc.

Corporate profits: Income remaining after payments by corporations to employees and creditors (including taxes paid to the government). This component includes dividends to shareholders, taxes on corporate income, retained earnings that can be used for investments.

Net interest income is the difference between the amount of interest income received by households from firms and the outside world for loans granted by them, and the amount of interest payments they make to repay consumer loans.

The sum of these primary incomes forms the national income - the totality of primary incomes received by the owners of production factors. In the future, as a result of the redistribution of national income through various taxes, social insurance contributions, incomes of civil servants, military personnel, transfer payments, etc. are formed.

In order to move from national income to net national product, it is necessary, on the one hand, to add to the former the value of indirect taxes (VAT, excises, etc.) that increase the cost of production and are withheld by the state from the private sector. On the other hand, it is necessary to deduct government transfers. Thus, NNP is equal to national income plus so-called net indirect taxes (indirect taxes minus government transfer payments).

If we add to the NNP the cost of depreciation of fixed capital (depreciation), then we again get the gross national product. As you can see, although the GNP is intended to reflect the cost of only final goods and services, it still contains a repeated account, since it includes a value equal to the cost of depreciation of buildings and equipment. The difference between GNP and NNP is only that the first includes gross private domestic investment, and the second - only net private domestic investment, which characterize the amount of fixed capital growth for the year. Therefore, NNP better than GNP characterizes the economic results of the company. This is the net result without the depreciation cost of the fixed capital.

3. MARKET DISTRIBUTION AND INCOME REDISTRIBUTION

Under the conditions of commodity production, the material distribution of the product remains the basis, but begins to have an intra-production character. The following levels are distinguished in the distribution structure:

The distribution of the instruments of production is the subject of analysis of capital markets;

The distribution of society members by type of production is the subject of labor market analysis;

The distribution of the product - commodities among the participants in production - is the subject of analysis of the distribution of income in society.

In economic theory, there are two approaches to the distribution of income

1 Functional, in accordance with which a functional or factorial, horizontal distribution is allocated - depending on the function performed by each factor of production in the production process: wages - for work, rent and interest - for resources owned by someone, profit - entrepreneurial income.

2 Personal - personal (personal), vertical distribution of income, i.e. distribution of income among households.

Functional distribution is a problem of microeconomics, personal - macroeconomics.

Marx in the "Introduction" cites borrowed from D.S. Mill's sequence of phases of reproduction: production - distribution - exchange - consumption. It is an abstract-logical diagram of the movement of the product through the phases of reproduction. But in market conditions, the sequence changes: production - exchange, distribution - consumption. In a centrally controlled economic system, the production of a product is followed by its distribution in accordance with a plan, and then consumption. The exchange drops out, becomes formalized, the distribution was carried out by the State Planning Commission, the ministries. K. Marx substantiated the idealized scheme of the primacy of production, modern economic theory is concentrated in the field of exchange analysis, while classical political economy is in the field of distribution.

In a centrally controlled economy, the phase of distribution and especially redistribution based on centralization dominates exchange - i.e. the economic distribution of the product inherent in subsistence farming is being restored on the basis of centralized planning and the centralization of all distribution relations up to the determination of the wages of an individual worker.

The task of the transitional economy is to restore the sequence of phases of reproduction inherent in a market economy: P-O-R-P.

The role of distribution in the economic system is determined by the functions performed by distribution:

1 differentiating - the definition of the relationship (quantity), "in which the products go to individuals";

2 motivational or stimulating, depending on the method of distribution - the active inverse effect of distribution on production and exchange through the owner's motivation system or the employee's incentive system;

3 reproductive (compensatory) - ensuring the reproduction of all factors of production - land, labor, capital, entrepreneurship through compensation for the costs of each factor (their imputed costs);

4 mediating - mediated relationship of production and exchange on the one hand, and consumption on the other.

These functions are general economic.

5 Socio-economic distribution function - implementation (realization of the economic domination of the class of owners in societies of deep class differentiation, or humanistic - in a post-industrial society, ensuring a high level of social justice through the mechanism of income redistribution).

Thus, distribution and exchange are interrelated and mediate production and consumption. The formation of personal income is not limited only to the phase of distribution, an important role is played by exchange and the method of connection with the means of production. Among the various methods of distribution, the most efficient is that which is based on labor advantageous to the producer. The distribution should have a humanistic orientation and be fair from the point of view of equality for all economic entities with different interests of the rules of the game - economic activity.

The market mechanism as a regulator of the distribution of products in the sphere of production and outside it in political economy is characterized by the so-called "law of value", according to which average labor costs for their production in society are expressed in the average prices of goods. However, due to the impossibility of direct measurement of "labor costs" in many types of Activities, the "law of cost" turns out to be metrologically untenable in terms of substantiating pricing by "labor costs" that cannot be measured. Nevertheless, if we recognize the fact of the existence of prices in the market as an objective reality, then the price ratios of different products (intermediate, auxiliary, final) determine the profitability and profitability of the production of each of them with the technologies adopted by the manufacturers and the organization of the business. In the absence or underdevelopment of the macroeconomic regulation system, private entrepreneurs react to market prices by expanding and starting the production of some types of products and curtailing and stopping the production of others. Accordingly, when considering the processes of production and distribution of products in society over sufficiently long time intervals, the so-called "law of value" regulates intersectoral proportions and absolute indicators of production in each of the branches.

The market mechanism is really capable of regulating, if not everything, then a lot in the life of society. But the real freedom of private heterogeneous enterprise under the conditions of the basic economic law of capitalism is "more profit right now!" -- puts everyone before the question of the nature and quality of this regulation.

The income distribution mechanism consists of three blocks:

The first block is the functional distribution of income. Such a distribution is possible only under the condition of the formation of factor markets that set the prices of factors of production. The labor market plays the most important role in the structure of factor markets.

The second block is social redistribution. It is due to state intervention in the process of market, socially indifferent distribution of income and is carried out with the help of tax and transfer mechanisms.

The third block - the distribution, due to the activities of groups with special interests. This distribution is related to the two previous types of income distribution in society. The allocation of this method of income distribution is due to its specific (intermediate) economic nature.

The features of distribution in a transitional economy are determined by the third block of distribution mechanisms due to its high "efficiency". This is due to significant institutional changes. But before moving on to institutional analysis, it is necessary to identify the cause-and-effect conditionality of the inefficiency of the income distribution mechanism that has developed in the transition economy. The main reason for this, in our opinion, is the lack of competitive, and in some cases, for example, for land - markets in general. The labor market, due to restrictions on the mobility of workers, as well as due to its monotonic structure, functions only in its infancy. Real market pricing in the labor market can be observed only in Moscow, St. Petersburg, and even then among highly qualified workers. The actual absence of these markets, both legal and mass, leads to an increase in the corresponding transaction costs, and hinders the free movement of resources in order to increase the efficiency of their use. It is in the integrity of the market system of the modern Russian economy that many researchers see the main reason for the significant decline in production, and, consequently, the decline in incomes of the bulk of the population. However, it should be noted that in conditions of a deep economic crisis, the incomes of various factors of production and groups in society do not fall in the same proportion. Efficient markets will be formed only when the goals of economic organizations provide a sufficiently high motivation for economic entities to carry out market exchange.

Because of this, markets act as a collective good for a particular group of economic entities. Moreover, groups can be both large and small. Traditionally, there are two institutional conditions that serve as a necessary basis for the formation of markets: the institution of private property and the freedom to conclude contracts (or rather, their competitive conclusion, providing for the choice of the method of contracting). The relatively low incomes of the majority of employees in Russia are determined by the lack of an institutional component necessary for a developed labor market.

The distribution of income also depends on who acts as the institutional and innovator. For example, in the Russian labor market, the main institutional and innovator is the state. This is primarily due to the fact that almost half (49%) of the employed are employed by the state, as well as the lack of organization and the lack of real competitive power in the supply of labor and the trade unions representing it. By fixing a low level of wages in the public sector and limiting wages in the business sector by high taxes on the wage fund, the state thereby stimulates the creation, along with the legal one, of a shadow market comparable in capacity, as well as a secondary employment market. According to the theory of G. Laibkep, the attitude of individual economic agents to the proposed institutional innovation is determined by the net benefits that they receive from its implementation. Weak trade unions are in many ways beneficial to the state, since in this case the institutional changes that it induces are aimed only at formally fixing the existing pricing practices in the labor market. Analyzing the impact of income distribution on institutional changes, it is rather difficult to establish a strict causal relationship between changes in the proportions of income distribution and the formation of institutional structures. This indicates the complexity of these socio-economic interactions. If we adhere to the endogenous concept of institutional changes, then the distribution of income will inevitably induce a transformation of the institutional structure of the economy. On the contrary, according to the exogenous concept, the introduction of institutional innovations determines changes in the proportions in the distribution and redistribution of income in society.

It is possible to identify the implementation of the above two algorithms of institutional changes by analyzing the impact of low incomes and poverty on the formation of relevant institutions, as well as the activities of groups with special interests aimed at institutionalizing changes in the proportions of income distribution.

4. NATIONAL INCOME IN RUSSIA AND FOREIGN COUNTRIES

To perform their functions, state bodies at all levels of government must have an appropriate financial base. To this end, an extensive network of budgets is being created in each country, which ensures the accumulation of monetary resources of the regions to finance their economy, social sphere, the improvement of each administrative-territorial unit, the maintenance of legislative power, the administrative apparatus and other activities. In the process of generating revenues and expenditures of certain types of budgets, their balancing, certain financial relationships arise, regulated by law. All these elements (organization and principles of building the budget system, the budget process, the relationship between numerous types of budgets, respectively, and the totality of budgetary rights) constitute a budgetary device.

In different countries, the budget structure differs in its features, due to the state structure, territorial-administrative division, the level of economic development, and its structural features. There are two forms of government: unified (unitary) and federal. In unitary states (Great Britain, France, Italy, Japan, etc.) there are two levels of government - central and local; in federal states (USA, Canada, Germany, Switzerland, etc.) - three levels of government: central, members of the federation and local.

Gross national income of Russia, 2006-2011

National income, billion dollars	National income per capita, dollars	Share in world national income, %	National income growth rate,%

Gross national income of Russia, 1990-2011

Japan's gross national income, 2006-2011

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See what "National Income" is in other dictionaries:

- (English national income) one of the generalizing indicators of the economic development of the country, the value newly created in material production. Contents 1 The content of the national income ... Wikipedia

- (national income) 1. The total income of residents in the country, measured at factor cost less depreciation of fixed capital. It is equal to the gross national product, defined on the same terms. Based on this, it is used ... ... Economic dictionary

national income- national income 1. Newly created (for a year) value in the branches of material production (interpretation adopted in Marxist literature). For many years N.d. in this interpretation was considered as a basis for further expanded reproduction and ... ... Technical Translator's Handbook

- (national income) The total annual monetary value of goods and services produced in a country. See: gross national product (gross national product); national income accounts; net national product (net... Glossary of business terms

The value of a part of the total social product, obtained after deducting all the material costs of its production. In the system of national accounts, the total income received by resource providers for their contribution to the production of gross domestic ... ... Big Encyclopedic Dictionary

Modern Encyclopedia

national income- NATIONAL INCOME, a general indicator of the country's economic development; in domestic statistics, it is calculated as the value of a part of the total social product, obtained minus all material costs for its production. IN… … Illustrated Encyclopedic Dictionary

See income. Antinazi. Encyclopedia of Sociology, 2009 ... Encyclopedia of Sociology

national income- The value of the gross national product minus all the material costs of its production ... Geography Dictionary

NATIONAL INCOME- the most important (generalizing) indicator of the country's economic development; part of the value of the total social product created in the country, remaining after the replacement of the consumed means of production; general indicator of economic development ... Legal Encyclopedia

Books

Soviet socialist economy 1917-1957 , Rabinovich M.. The 40 years that have elapsed since the start of the October Revolution represent an era consisting of two approximately equal historical periods in the life of the Land of Soviets. Main content…

The general indicator of the volume of production in the national economy is the gross product (GDP), which is divided into GDP and GNP:

Gross domestic product (GDP) - it is the total market value of the entire volume of final production of goods and services created in the territory of a given country during the year using factors of production owned both by this country and other countries.

Gross national product ( GNP) - it is the market value of the total final production of goods and services created by national enterprises in their own country or abroad during the year using factors of production owned by the country.

GNP differs from GDP by the sum of the balance of income received by a given country from abroad and transferred abroad of income received in the territory of this country. Features of the GDP or GNP indicator:

1) all goods and services are calculated in cash once;

2) these are indicators that take into account the volume of production for a certain period of time, as a rule, for a year;

3) these are indicators that take into account goods and services, regardless of whether they managed to sell them or not;

4) these indicators take into account only final products (products for final consumption), and not for resale and processing.

The main principles for calculating these indicators are: exclusion double counting errors» and exclusion from the calculation unproductive transactions. The first principle is ensured by sectoral consideration of only added value.

Added value- this is the market price of the volume of output produced by the firm minus the cost of consumed raw materials and materials purchased from suppliers. This is the contribution of this firm to the production of the current year, consisting of the wages of its employees, utility and rent payments of profit.

Exclusion from the calculation of non-production transactions, i.e., those transactions that do not include an increase in the production of goods and services. Non-manufacturing transactions are: Firstly, purely financial transactions of three types: purchase and sale of securities; state transfer payments to certain categories of citizens (payments for social insurance, unemployment, pensions, allowances, scholarships); private transfer payments (one-time gifts from relatives, monthly subsidies to students from their parents), Secondly, sale of second-hand things (each thing should be taken into account when calculating GDP only once).

where С – personal consumption expenses;

I - gross private domestic investment, including industrial capital investments in the main production;

G - public procurement of goods and services;

Xn - net exports - the difference between exports and imports.

The method of calculating the company's income includes:

where A - depreciation - deductions for capital consumption;

T - indirect taxes on business;

(С+S) - (spending and savings show income) - these are wages, contributions to social insurance funds, pensions and employment;

R - rental payments (rent);

r – interest income of capital owners;

P - profit, including that received by private owners, the profit of corporations.

A feature of the calculation of GNP by income is the presence in the composition of income of two categories of distribution of funds not related to the payment of income - this is depreciation (A) and indirect taxes on business (T).

Depreciation – these are annual deductions for the replacement of capital consumed during the year, i.e., fixed assets that operate in production for no more than a certain period, which depends on the policy of the enterprise. On the whole, for the national economy, depreciation deductions constitute an enormous amount, but they are not an addition to profits, since they must be set aside to replace in the future the capital consumed in production in individual years.

Indirect business taxes include: value added tax (VAT), sales tax, excises, customs duties, property tax, etc. These taxes are included in the price of goods and services, and thus are passed on to the buyer. The inflow of indirect payments to the treasury is, in fact, not earned income of the state, since it does not make any contribution to the production of the current year in exchange for the receipt of indirect taxes in the budget.

The calculation of GDP by industry takes into account the role of industries in the creation of value-added GDP.

Reducing the value of GDP by the amount of depreciation, we obtain net national product (NNP ) - the total annual volume of production of goods and services that was produced and consumed in the country.

National Income (ND)- the value newly created over the year, which characterizes the welfare of society, i.e. the amount of wages, rents, profits, interest, is determined by subtracting indirect taxes on business from the value of ND, which do not reflect the contribution of economic resources to its creation.

Personal income (LD) is the sum of the income of the population, determined by deducting from the national income (NI) the contributions of workers, employees and employers to the social insurance system, corporate income taxes and undistributed profits, but adding transfer payments . It is earned, not received income. Citizens do not get all personal income, as it is taxed.

Disposable income (DI)– income available for direct spending by households; determined by subtracting individual taxes from personal income.

The income level of the population is reflected using the following indicators.

Average per capita cash income, which are calculated by dividing the total amount of money income by the actual population.

Nominal cash income population characterize the total amount of money that is received (or accrued) for a certain period of time.

Disposable cash income is income that can be used for personal consumption and savings. They are equal to nominal income minus taxes, mandatory payments and voluntary contributions from the population.

This principle of calculating the national income or national product differs from the methods currently used in statistics for finding the value of annual production.

Currently, the main indicator in the compilation of national accounts is the gross national product (GNP), which is calculated using the formula

GNP = C + Ig + G + Xn,

where C is personal consumption expenditure. This category includes all household expenditures for the purchase of consumer goods;

G - public procurement of goods and services. This group of expenditures includes all government expenditures on final products and services of enterprises in the manufacturing sector;

Xn - net export. It represents the amount by which foreign spending on domestic goods and services exceeds domestic spending on foreign goods and services.

Various indicators are used to measure the national product: gross national product (GNP), gross domestic product (GDP), national income (ND), net national product (NNP).

GDP-measures the value of final products produced in the territory of a given country for a certain period.

GNP-the market value of final goods and services produced by factors of production owned by a given country, including in other countries for a certain period of time.

There are three ways to measure GDP (GNP):

1 Production - summing up the value added of all producers of goods and services in a given country. Value added-is the value created in the production process, not including the cost of consumed raw materials and materials.
2 Distributive (income) - the use of income streams of funds. Income is received by the owners of the factors of production. There are two types of income: labor and property (entrepreneurial). The main part of labor income is wages. Entrepreneurial income includes: rent (P), income from own (private) enterprise (Ds), corporate profits (Pc), including corporate income tax (CIT), net income (NPK), dividends (D); interest on deposits (%). This calculation method takes into account two components that are not related to payments: depreciation (A) - depreciation of capital and indirect taxes (Kn = customs duties, sales taxes, VAT):

NNP=GNP-A.

National income (NI) is the total income earned by the owners of factors of production (wages, interest on capital, rent):

ND \u003d NNP-Kn.

LD \u003d ND-NPk - CHPK - contributions to social insurance-T,

where ND - national income;

NPK - corporate income tax;

NPC - net (retained) profit of corporations;

T - transfers (pensions, scholarships, allowances);

PD \u003d ND - NPk - PKK - contributions to social. fear. T - IN,

where IN -- individual (income) taxes.

W Final consumption (by expenditure) - the sum of the expenditures of all economic agents, i.e., the total demand for the national product

GNP \u003d C + Ig + G + Xn,

where C - personal consumption expenditures, including household expenditures on durable goods and current consumption;

G - public procurement of goods and services for the construction and maintenance of budgetary organizations;

Xn - net export of goods and services abroad, calculated as the difference between exports (Ex) and imports (Im).

GNP) - the total value of the total volume of final production of goods and services at current prices (nominal GNP) or base year prices (real GNP) produced in the territory of a given country and abroad, using factors of production belonging to this country. In other words, GNP is all the products produced by a given country for a certain period of time, the value of all goods produced and services rendered. Since 2009, according to the new System of National Accounts, GNP has been renamed Gross National Income (GNI). However, the national statisticians of some countries continue to use the same terminology.

GNP, along with gross domestic product, is the basic, most holistic and generalizing macroeconomic indicator, since production volumes make it possible to assess the economic power of a given country. The higher the GNP, the more products are produced by the branches of the national economy.

GNP Calculation Methods

GNP \u003d GDP + Balance of primary income received from abroad or transferred abroad (such first income usually includes wages, income from property in the form of dividends)

Nominal and real GDP

Due to the constant dynamics in the volume of production, the GDP of each country, as a rule, changes over time. If the volume of per capita GDP increases, then this indicates an increase in the standard of living of citizens of this society. On the contrary, the negative dynamics of GNP indicates an economic crisis. Therefore, comparing the GDP of two different years, you can find out in which of them the standard of living of citizens was higher.

However, such comparisons raise the following problem. The fact is that GDP is measured in monetary units (rubles, dollars, euros, etc.), which in different years may have different purchasing power due to price changes. For example, if the GDP was 1,000 monetary units in 2000 and 2005, and the price level rose over that period of time, then the standard of living actually went down because the same amount could buy less goods at the end of the period than at the beginning. Therefore, in order to be able to compare GDP in different years, it is necessary to take into account price dynamics. For this purpose, the concepts of nominal and real GDP are introduced.

Nominal GDP- the volume of production in the current year, expressed in prices of the current period.

Where Q- volume of goods or services produced, P- The price of a given product or service in the market.

Real GDP- the volume of production in a given year, but expressed in prices of the base period (for example, the previous year, with which the value of GDP is compared; allows more accurate comparison of data, making adjustments for price increases):

, where P base - the cost of a given product or service in the market at the time of the base period.

To illustrate, consider the following example. Let the economy produce only two goods in 2000: goods 1 and goods 2. In 2000, 80 goods were produced. good 1, the price of which was 5 monetary units, and 50 pcs. item 2 at a price of 12 currency units per item. Therefore, nominal GDP in 2000 was: 80 x 5 + 50 x 12 = 1000 monetary units. Let, further, in 2005, 60 pieces were produced. item 1 at a price of 6 currency units and 40 pcs. good 2 at a price of 16 monetary units. Nominal GDP in 2005 is: 60 x 6 + 40 x 16 = 1000 monetary units. Thus, nominal GDP has not changed over the years. However, due to rising prices, real GDP in 2005, i.e. 2005 output in 2000 prices, decreased: 60 x 5 + 40 x 12 = 780 monetary units.

The ratio of nominal GDP to real GDP is called GDP deflator. For our example, the GDP deflator in 2005 is 1000 / 780 = 1.282. The GDP deflator shows how much the general price level in the economy increased (in this example, by 28.2%).