Net National Product

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To determine the state of the economic system as a whole should be aggregated (summarized) the position of the economy of each organization.Thus, we can reveal statistical indicators that will characterize the total social production.These indicators are referred to as macro-economic.In turn, their combination forms a system of national accounts.

For one indicator of the GDP, which is the population of the state could be used, without taking into account depreciation of buildings, structures, equipment, machinery, should be deducted from the GNP of depreciation.The result is a net national product (NNP).

Using this indicator is carried out measurement of the total annual volume of goods and services produced in the entire economic system, which includes different firms, production, foreign companies, households, whose follow-up does not lead to a decrease in production capacity of the country.

Net national product - is the total volume of goods and services produced (made) and used (the use of) the population for some time.The period is set, usually annually.

net national product determined in several ways.With the first method is performed subtraction of depreciation expenses of GNP.Is subtracted from the gross national product costs, which have gone to compensation already used fixed capital.

The second method is to establish the cost of acquisition of the main components of NNP.Among the key parts that make up the net national product, there are government expenditures for the purchase of raw materials and products, the overall consumer spending and other citizens.

NNP is a reflection of the total cost of the GNP, which is intended for the use of the population.At the same time in the net national product laid the various taxes that do not fall directly into the scope of the consumer population.As a rule, these fees include excise taxes and customs duties.Indirect taxes are considered to be the only elements not reflecting the actual contribution of the economic potential in the NNP.

net national product and national income (ND)

While holding indirect taxes on the volume indicator appears NNP ND.National income is the amount at the newly created during the year.This value reflects the fact that we add to public welfare through the production in the current period (year).In this connection, the calculation of national income is not taken into account the amount of indirect taxes, depreciation and subsidies of the state.The resulting figure is the "net wage income" population.National income is considered, therefore, quite important macroeconomic indicators and, therefore, are widely used in the comparative analysis.

In economic practice distinguish used and produced by ND.

of national income is considered to be re-created the entire volume of goods and services.ND used for accumulation and consumption is the product of the LP with the exception of losses (damage during transport, storage, military action, in the amount of construction in progress, natural disasters and so forth.) And the trade balance.

The LP included the production sphere of material production and the cost of goods from services.In accordance with the methodology of international statistics quantified the difference between national income and gross domestic product is the value of deductions for depreciation.