National Income Accounts

1
????? ????????? ???? ?????? ??????National
Income Accounts
2
???? ????? ?????? Production approach
?????? ?????? ???????? ????? ????? ???????
????? ????? ???????? ???????? ???? ?? ??????? ??
???????? ???? ???? ????? ???? ????.
GDP total market value of all final goods and
services produced in the economy within a year.
GDP ? Qi X Pi
3
?????????
1- ????? ??? ???? ????? ??????? ??? ????? ????? ?
2- ????? ??? ???? ?????? ??????? ??? ?????
???????? ?
4
??????
?? ?????? ??????? ?? ???? ???????? ??? ?????
????? ??????? ?????? ?? ???? ???? ???? ???????
??? ???????? (Net Indirect tax (NIT)
???? ??????? ??? ???????? ??????? ??? ????????
????? ???????? Net indirect tax indirect tax
subsidies
?????? ??? ???? ???????? ?????? ??? ??????? ???
???????? ???? ????? ???? ??? ???? ??? ???? ?????.
5
?????? ???????? ??????? ??????? Value added
???? ???? ?????? ??????? ????? ???????? ?? ????
?????? ??????? ??? ?? ????? ?? ????? ??????? .
Value added the increase in value that a firm
contributes to a product or service.
Value added value of sales cost of materials
used to produce the product
6
????(1) ??????? ???? ???? ????? ????? ????????
??? ?? ???? ??? ???????? ????? ?? ??????? ??????.
???????
???? ?????? Sales
???????? ??????? Cost of materials
?????? ??????? Value added
?????? ????? ?????
10
0
10
??????? ????? ??????
15
10
5
??????? ????? ?????
30
15
15
7
????(2) ??? ?? ????? ???? ?? ????? ????? ?? ???
?? ????? 500 ????? ?????? ??? ????? ?? ????? 300
????? ????? ?? ??? ??????? ? ??????? ?? ??????
??? ?????? ????? ?? ????? ????? 450 ????? ?????.
?? ?? ?????? ???????? ???? ???? ???????? ???
?????? ?????? ???????? ???? ????? ?
750 ????? ?????
8
?????? ?????? ?????? Net Domestic Product
?? ?????? ?????? ???????? ???? ???? ?? ?? ??
?????? ???? ???? ?? ?? ?????? ???????? ??????.
??? ??? ?? ???? ??? ?????? ?????? ????????
??????? ?????? ?????? ( Net Domestic Product (NDP
?????? ?????? ?????? ?????? ?????? ????????
???????
NDP GDP Depreciation (D)
Depreciation Annual allowance set aside for the
replacement of worn-out capital
9
?????? ????? ????? Income approach
????? ?????? ?? ????? ????? ????? ???????
???????? ?? ??????? ????????? ???? ???.
Total value of all payment of factors of
production that have contributed within a to the
production process Year .
Domestic Income wages rent
interest profit
10
?????????
?? ???? ?????? ?????? ???????? ??? ?? ?????? ??
????? ?????? . ???? ?????? ?? ???? ?????? ??????
???????? ???????? ???????? ?????? ???? ??? ??????
?? ?????? ????? ????? ???????? ?? ????? ?????
????. ?? ??? ???? ???????? ?
1- ??????? Depreciation
2- ???? ??????? ??? ???????? Net indirect tax
11
???
?????? ?????? ???????? ????? ?????? ???????
???? ??????? ??? ???????? ????? ?????? ????????
GDP Domestic Income D NIT Gross Domestic
Income (GDI)
12
GDPGDI
NDP
Domestic Income
Factors payment
Factors payment
Factors payment
NIT
NIT
Depreciation
13
?????? ????? ??????? Expenditure approach
?????? ?????? ???????? ????? ????? ??????? ?????
??? ????? ??????? ????? ???? ???.
GDP aggregate spending on all goods and services
produced in the economy within a year.
14
???????? ???????
1- ??????? ?????????? consumption expenditure
??????? ?? ??? ?????? ??????? ??? ????? ????????
.
15
2- ??????? ?????????? ???????? ????? Gross
private investment expenditure ?? ??? ??????
????? ???? ????? ????????? ???????? ? ?????
??????? ?????? ???? ??????
?. ??????? ?????? (??????) planned expenditure
(fixed) ??????? ??? ?????? ???????? (machines)
????????? (construction) .
?. ??????? ??? ?????? unplanned expenditure
?????? ?? ??????? inventories .
16
3- ??????? ??????? Government expenditure
??????? ?? ??? ??????? ??? ????? ???????? Q
How does a government finance its spending ?
4-???????? Exports ????? ????? ?????? ???
????? ??????? ?????
17
?????? ?????? ???????? ??????? ??????????
?????? ?????????? ??????? ??????? ????
????????
GDP Consumption expenditure gross investment
expenditure government expenditure net exports
GDP C I G (X- M)
???? ????? ?? ??? ???????? ?? ????? ???????
?????????
18
?????? ( 1) ?? ???? ????? ??????? ??? ?? ??????
??????? ????? ? ??? ????? ????? ????? ?? ???????
?????? ?? ?????? ?? ????? ??????? ???? ???? ?????
?????.
GDP GDI AE
19
?????? (2) ??? ???? ?????? ?????? ?????? ????
????? ???? ????? ????? .
GDP per-capita GDP/ Population
GDI per-capita GDI/ Population
????? ???? ???? ????? ????? ?? ????? ??????
??? ??? ???? ????? ??????? ?? ???? ?????
????????? ?
20
?????? ????? ?????? Personal income accounts
Personal Income (PI) Domestic Income -
(social insurance corporate tax undistributed
profit) Transfer Payment
Disposable Income PI personal income tax
21
Q Disposable income - consumption ??
Personal Savings Disposable income
consumption expenditure
22
????? (1)
40
Depreciation
750
Wage
22
NIT
120
Interest
100
Gross investment
60
Rent
850
Personal consumption
108
Profit
143
Government exp.
7
Net export
Find 1- Domestic Income 2- NDP 3-
GDP By a) Income approach b)
Expenditure approach
23
1) Income approach
Domestic income w r i p
750 60 120 108 1038
NDP Domestic income NIT
1038 22 1060
GDP NDP D
1060 40 1100
24
2) Exp. approach
GDP C I G (X-M)
850 100 143 7 1100
NDP GDP - D
1100 40 1060
Domestic Income NDP - NIT
1060 22 1038
25
????? (2)
30
Depreciation
80
Personal income tax
60
NIT
0
Distributed profit
360
Personal consumption
13
Undistributed profit
40
Transfer payment
450
Wages
27
Corporate tax
Social insurance
22
40
Interest
50
Rent
Find 1- Domestic Income 2- GDP 3-
Disposable income 4- Personal
Savings
26
Domestic income w i r p
460 40 50 (13 27) 590
GDP Domestic income NIT D
590 60 30 680
PI Domestic income - (SA CT UP) - TP
590 - (27 13 22) - 40 488
PI Domestic income - (SA CT UP) - TP
590 - (27 13 22) - 40 488
27
?????? ?????? ???????? ?????? ???????? ????????
????????Nominal and real GDP and the Price index
?? ?????? ?????? ????? ??? ????? ??????? ??????
????? ???????? ??????? ??? ?? ???? ???? ??????
?????? ???????? ?????? ?? ?????? ?? ?????? ??????
?????? ????? Nominal GDP or GDP at market
prices .
Q What does the increase in GDP means?
28
But if we know that GDP was calculated as follows
Real GDP
Nominal GDP
1000
1000
1000
2000
2000
4000
Q What actually happened to GDP growth?
29
??????
30
Example (prices in KD)
Q How much the price level has increased by?
31
Q How can we calculate the real GDP ?
Q How can we calculate real income ?
Real income (Nominal income / PI) X 100
32
From the previous example Consider the year
1998 as a base year
Price Index
Real GDP
100
1000
200
1000
200
2000
Note the price index for the base year always
equals 100
33
Q What is the difference between the consumer
price index and the GDP deflator?
Real GDP(m)
50
80
80
34
100
600
600
150
600
900
35
?????? ?????? ???????? ? ?????? ??????
????????Gross Domestic Product (GDP) and Gross
National Product (GNP)
GDP total market value of all final goods and
services produced within the geographic borders
of the economy within a year, by national and
foreign factors of production.
GNP total market value of all final goods and
services produced for the economy (locally and
outside) within a year, by national factors of
production only.
36
GDP Goods Services produced locally by
Foreign factors of production
GNP Goods Services produced by national
factors of production
Outside the national borders
37
Flows outside the economy
Flows to the economy
Q What is the Net factor payment from abroad ?
38
Q What is the relationship between GDP and GNP ?
GNP GDP Net Factor Payment Abroad
Q Which is higher for the Kuwaiti economy, the
value of GNP or GDP ?
39
????? ????? ??? ???? ?????? ?????? ??????
1 ???? ??? ?????? ??? ?????
2 ???? ??? ?????? ?????? ?? ??? ???????
40
3 ???? ??? ?????? ???? ????? ?????? ???????
4 ???? ??? ?????? ????? ?????? ?? ????? ???
????? (???????? ????? Underground economy)
5 ????? ????? ????? ??????? ????? ??????
??????? .
41
???? ??????? ????? ?????? ?????? ????? ????? ??
????? ????? ?????? ???????? ???????
1 ?? ???? ??????? ??????? ?????.(?? ????? ?????
?????? ?????? ????? ?????)(???? ????? ?????)
2 ?????? ?????? ?? ???? ??? ???? ?????? ?????
????? ?? ?? ???? ?????? ??????? ???? ???????.
42
????? ????? Lorenz Curve
Total income (cumulative )
Total population (cumulative )
Lorenz Curve a diagram illustrating the degree
of income inequality
43
3 ?????? ?????? ?????? ?????? ?????? ?? ??????
?????? ?????? .
4 - ?????? ?????? ?????? ???? ?????? ?? ???????
??????? ??????? (?????? ?? ?????? Flow ??????
?????? ?? ?????? ?Stock (.
44
5 ?????? ?????? ?? ???? ?????? ????? ??? ??????
???? ??????? .
6 ?????? ?????? ?? ???? ????? ????? ??????? ???
????? .
45
7 ???? ?????? ?? ???? ?????? ??????? ??????? ??
???????.
8 ?????? ?????? ?????? ?? ?? ???? ?????? ??
?????? ???????? (????? ??????) .
46
????? ???????
1- ?? ???? ??????? ????? ????????? ???? ??????
?????? ??????? ??? ????? ??? ???????? ????? ?
???????? ? ???? ??????? ????????? ??? ?
2- ?? ??? ??????? ??????? ????? ???????? ?????
??????? ????? ????????? ?
3- ?? ????? ????????? ??? ??? ???? ?? ????? ?
47
??? ?????? ??????? ??????? Human development
indicators
2 ???? ????? ????? Infant mortality rate
1 ????? ??????? ??? ??????? Life expectancy
at birth
4- population without access to safe water
3 ???? ????? ??????? ???????? Adult literacy
rate
6 ???? ???????? ???????? Political
participation rate
5-???? ??????? ???? ????? Long term
unemployment rate
48
???? 1???? ??? ?????? ????? ??????? ??????? ????
1999
Real GDP per-capita (ppp)
Life Expectancy at birth
Infant Mortality rate (per 1000 live births)
Adult illiteracy rate
Maternal mortality rate (per 100,000 live births)
75.9
19.6
29
Kuwait 35
25,314
12
58
42.5
1400
Yemen 148
810
76
Q What does the UN Human Development Index (HDI)
represents?
49
???? 2???? ??? ?????? ????? ??????? ??????? ????
1999
Real GDP per-capita
Life Expectancy at birth
Infant Mortality rate (per 1000 live births)
Adult Literacy rate
Maternal mortality rate (per 100,000 live births)
69
83.2
180
Turkey 86
6350
40
73.1
90.7
140
Sri Lanka 90
2490
17
Note Check other human development indicators
from the annual UNDP Human Development Report
(www.undp.org/hdr2001/)