# Net national income

BNE distribution
of gross national incomes, net national incomes and national income in the Federal Republic of Germany from 1970 to 2003. (Until 1991 only West Germany, data in billion euro)

the net national income or also net national product is a statistic size of the economical Gesamtrechnung, which is to characterize the economic achievement of a national economy in a certain time period (often one year) and particularly as income indicator serves.

One differentiates thereby (similarly as with the national product) between the net national income to market prices and the net national income to factor costs.

The net national income to market prices (also primary incomes) results from the gross national income likewise evaluated with market prices from departure of the writings-off or from the net national product to market prices from addition of the balance of the acquisition and fortune income, those to the foreign country paid and/or. from the foreign country to be referred:

[itex] NNE_m = BNE - A = NIP_m + F< /math>

The net national income to factor costs (= manufacturing costs) is calculated by the net national income to market prices by subtraction of the goods taxes (production and import duties) and addition of the subsidies or by the net national product to factor costs again by addition of the balance of the acquisition and fortune incomes and also for national income is called:

[itex] NNE_f = NNE_m - T_g + Sub = NIP_f + F< /math>

If one finally increases the net national income by the transfers (transmissions) from the remaining world and if it decreases by the transfers to the remaining world, one receives the available income of the residents of a national economy.

In the illustration the gross national income is set equal 100%. Without the writings-off (highest size of, lila) the net national income results to market prices. The net national income without the balance from goods taxes and goods subsidies (secondaryupper size, black tiled) results in the net national income to factor costs or the national income.