Net Versus Gross National Income

Abstract

From a conceptual point of view, for most purposes net figures on Domestic Product and National Income are to be preferred to gross figures. Nevertheless, in practice gross figures are most often used on the grounds of various arguments. In this paper, these arguments are challenged. Attention is paid to the reliability of capital consumption estimates and a sensitivity analysis is conducted from six OECD-countries.

Keywords: Gross, net, national income, national producti, domestic product, economic growth, productivity, welfare

JEL Classification: C82, E6