Engenharia do Ambiente National Accounts Rui Motarmota@ist.utl.ptTel. 21 841 9440 Ext. 3440 Tiago Domingos October 2010
National Accounts System of National Accounts is a comprehensive accounting framework within which economic data can be compiled and presented in a format that is designed for purposes of economic analysis, decision-taking and policy-making. Integrates a set of macroeconomic accounts, balance sheets and tables based on a set of internationally agreed concepts, definitions, classifications and accounting rules. Accounts compiled for a succession of time periods, thus providing a continuing flow of information, indispensable for the monitoring, analysis and evaluation of the performance of an economy over time.
Aggregation 5 Sectors: Households Firms Financial Intermediaries (banks, …) Governments (national and local) Rest Of the World (ROW) 4 Markets (Supply and Demand): Goods and services Resources (labor, land and capital) Money (loanable funds) Foreign exchange
Circular flow of income Factors: Labor, Land, Capital Factor payments: Wage, Rents, Interests, Profits – become income. Expenditures: on goods and services (output) 1 – Income approach: Y = Wage + Rent + interest + operating surplus 2 – Output approach: Y = market value of all produced output (Σ VA) 3 – Expenditure approach: Y = C Households € € Factor payments: Y Expenditures: C Factors Output 3 2 1 Firms
Circular flow of income Balance to: Households: Y - Tnet = C + S, Tnet = T- Tr Firms: Y = C + I + G + X - M Government: ΔGov = Tnet - G FI: S + ΔGov + B - L = I ROW: X - M = L - B ΔGov S FI Households C G Gov. Borrow Lend Tr X T M ROW Y Firms I - Market for outputs
National Accounts Identity C I X M
Main Aggregates National (Residence) + Primary income flows from ROW - Primary income flows to ROW Product / Income Domestic (Territory) Net + Consumption Fixed Capital (CFC) - Consumption of Fixed Capital (CFC) Aggregate X Gross X – Domestic produc, Income, Saving, Disposable income, ...
GNI = GDP + Y’RM . Where Y’RM = Netincome payable to non-resident units for production factors. Domestic Product vs. National Income
Main Aggregates Subtract CFC
Domestic Product vs. National Income Source: AMECO database
Gross Product vs. Net Product [euros 2000] Source: AMECO database
Gross/Net Saving in Portugal [euros 2000] Source: AMECO database