A History of National Accounting by A. Vanoli

By A. Vanoli

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From Estimates o f National Income to Construction o f Accounts fo r the Nation 21 Box 6 The three approaches to national income according to Meade and Stone M eade and Stone present in their Table A three approaches to national incom e (“T he construction o f Tables o f N ational Incom e, E xpenditure, Savings and Investm ent” , The Economic Journal, Ju n e S eptem ber 1941, pp. 2 1 6 -2 3 3 , table A, p. 231). Table A I. Net National Income at Factor Cost II. Net National Output at Factor Cost III.

Total Net National Output at Factor Cost 21. Total Net National Expenditure at Factor Cost government and the rest o f the world. Main emphasis is placed on net aggregates at factor cost (on the concept of factor cost see chapter 6, section 4 and Box 45), but the net aggregates for income and expenditure are also presented at market prices. The tables at factor cost analyse net national output by main branches of economic activity, the distribution of national income by types of income and net national expenditure by types of uses (see Box 6); they then present the formation and uses of personal income, the sources and uses of saving - including the deficit of the general government - and international transactions.

Martin from the Department of Commerce, presented the idea of an accounting system for the national economy. This idea was clearly manifesting itself. In France in 1939, Andre Vincent published his first ideas regarding the application of accounting principles to the national economy considered as an entity. In the Netherlands, Ed van Cleeff made his estimates for 1938 (published in 1941) within a format o f a national accounting system. By this time, in Scandinavia, the vision o f Ragnar Frisch (1895-1973, Nobel Prize 1969), one of the founders of econometrics, regarding a system of national accounts proceeds from a different source of inspiration.

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