Hoover宏觀經(jīng)濟(jì)學(xué)cha.ppt

1、National Income and Production Accounting,Measuring changes in general economic activity Interpreting production and income measures Chapters 2 and 3 in Hoover,1,Hoover_Fig.02.002,Circular Flow,2,Aggregate Income, Expenditure and Production All production revenues paid out in some form of income (ei

2、ther costs or profit) If production exceeds or falls short of expenditure, the difference is a change in inventory which is considered investment expenditure Measure aggregate activity either from: 1. the production side, 2. the expenditure side, or 3. the income side.,3,I. THE PRODUCTION SIDE Gross

3、 Domestic Product (GDP) Goods and Services (no transfers) Final (not resold, no intermediate goods) Current Production (not used, not sold from inventories) At Market Prices (price paid by end user; black market, externalities and household production excluded) Produced Domestically (not US/Canada c

4、itizens abroad) What is excluded from GDP? Leisure, environmental cost, quality, etc.,4,Two ways to measure GDP on production side: Final goods and services only Sum of Values Added in each stage of the production process. Silicone, Intel Chip, HP PC, Best Buy. In principle equivalent, but (1.) meas

5、ures GDP at Market Prices and (2.) measures GDP at Factor Prices. GDP-factor prices = GDP-market prices Indirect Taxes + Government Subsidies,5,Value Added and Final Sales methods,6,Gross Domestic vs. Gross National Product GDP: values added within the country GNP: values added through factors of pr

6、oduction owned by residents GNP = GDP + factor payments from ROW factor payments to ROW GNP used before 1991; GDP after 1991,7,8,National Income vs. Personal Income PI=income actually received by households PI = NI - Corporate Profits - Social Insurance Contributions - Net Interest payments - Net Bu

7、siness Transfer payments + Personal Income on Assets + Personal Transfer receipts,NI = NNP (GNP Consumption of Fixed Capital) - Indirect Business Taxes net of subs. + statistical discrepancy Note: NI factor basis; NNP market basis,9,II. THE EXPENDITURE SIDE,GDP = C + IGROSS + G + (X-M)1 Expenditures

8、 by all sectors: Household (70%): Consumption Firm (16%): Gross Private Investment fixed investment (structures and equipment), inventory investment Government (19%): Excludes transfer payments Foreign (12% - 17% = -5%): Subtract imports of households, firms, government since expenditures but not pr

9、oduced - M = CM + IM + GM2,10,11,Definition of Savings: All disposable income not consumed. Also, GDP = GDI 3 (if statistical discrepancy is ignored) So: SGROSS = GDP T C 4, and SGROSS + T + C = C + IGROSS + G + (X-M)5 IGROSS = SGROSS (G-T) (X-M)6 Subtract depreciation = depreciation allowances: I = S (G-T) (X-M)7 Investment equals savings minus the budget deficit minus the trade surplus.,12,III. THE INCOME SIDE,NI = sum of all Factor payments (to capital, labor, land, entrepreneurship) NI