National income

gross national income (red), net national income (green) and national income (blue) in the Federal Republic of Germany from 1970 to 2003 (until 1991 only West Germany, data in billion euro).

The national income (also net national income to factor costs or net resident incomes) is the sum of all of residents in the runa yearly from in and foreign country referred acquisition and fortune income, like wages, salaries, rents, interest, leases and selling gains.

The national income is thus the sum of all produced goods and services of a national economy expressed in money, those used, invested or against foreign goods exchanged are.

The national income forms one of the central sizes of the political economy.


Table of contents

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Developing calculation

starting point is the gross production value, i.e. goods (goods and services) produced the sum of the value of all in a national economy (of in and foreigners). Subtraction of the value of the payments in advance results in the gross value creation. Steer addition of the goods (production and) And subtraction of the subsidies the gross domestic product results in import duties.

Less the incomes of the foreigners inland and plus the incomes of the residents abroad the gross national income BNE results. Subtracts one the writings-off arrives one at the net national income at market prices or Primary income. The national income or net national income finally results in subtraction of the goods taxes and addition of the goods subsidies to factor costs.


     Gross production value  - Payments in advance   =========================================================    Gross value creation
- Incomes of the foreigners inland + incomes of the residents abroad ========================================================= Gross national income
- Writings-off ========================================================= Net national incometo market prices
- Goods taxes + all documents in Germany + dividend payments within the FRG + goods subsidies ========================================================= National income (net national income) to factor costs

use calculation

all amounts, which were spent on consumption and investment, plus the exports less the imported goodsresult in the gross domestic product.

Less the incomes of the foreigners inland and plus the incomes of the residents abroad the gross national income results. This again decreased by the writings-off results in the net national income to market prices. If one now the goods taxes (productionand import duties) and the subsidies in addition counts, receives one takes off the national income or net national income to factor costs.


      Consumption   + investment   + exports   - Imported goods   =========================================================     Gross domestic product (GROS DOMESTIC PRODUCT)
- Incomes of the foreigners inland + incomes of the residents abroad ========================================================= Gross national income
- Writings-off ========================================================= Net national income to market prices
- Goods taxes (production and import duties) + goods subsidies ========================================================= National income (net national income) to factor costs

of connections of the distribution calculation

gross national income and distribution

the sum of all in the inland (also of foreigners) gained incomes is the net national product to factor costs. Less the incomes of the foreigners inland and plus the incomes of the residents abroad the net national income results to factor costs or national income.

In the illustration the BNE is set equal 100%. Without the writings-off (highestSize of, lila) and the balance from goods taxes and subsidies (secondaryupper size, black tiled) remains the national income.

problems in practice

the collection of the o. g. Data it is difficult why in all countries not corresponding statistics in more desirableQuality are present.

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