Understanding National Accounts

A guide from the OECD;

Understanding National Accounts;

This manual explains what GDP and GNI and their components are and what they mean. It shows how they are used and what they are used for. And it does this in an easily understood way. Opening with a chapter showing how national accounts concepts relate to macroeconomics, the books goes on to systematically deal with volume and prices, international comparability, production, final uses, household accounts, business accounts, government accounts, and financial accounts. It also has chapter on how national accounts data are gathered and the history of the national accounts system. Three special chapters examine national accounts in China, India, and the United States. Previously published only in French, this manual has been revised and expanded to have a truly global perspective.

Chapter 1. The Essential Macroeconomic Aggregates-Defining GDP-Deriving GDP in Volume-Defining Demand: The Role of Investment and Consumption-Reconciling Output and Demand-Reconciling Output and Income-How Are These Figures Obtained?-Accuracy of National Accounts-Limitations and Pitfall to be Avoided-ExercisesChapter 2. Distinguishing between Volume and Price Increases-A Word of Caution: Compare Volumes-The Volume/Price Breakdown Applied to Changes over Time-The Difficulties of Aggregation-Volume Indices and Price Indices-Constant Prices-"Chained" Accounts and the Loss of Additivity-Unpleasant Practical Consequences of Chain Linking-Special Cases-ExercisesChapter 3. International Comparisons-Comparison of Growth Rates-Comparison of Ratios: The Example of the Saving Ratio-Comparison of Levels of Variables: GDP per Head in Volume-The Spatial Volume/Price Breakdown: Purchasing Power Parities-Comparison of Variables in Absolute Terms: Household Consumption-ExercisesChapter 4. Production: What it Includes and Excludes-The Production Frontier-The Illegal Economy and the Underground Economy-Measurement of Output and of Value Added-Nomenclatures and Classifications-ExercisesChapter 5. Defining Final Uses of GDP-Final Uses in the National Accounts-Households' Final Consumption Expenditure-Fiunal Consumption Expenditure by Governments-Final Consumption Expenditure of the NPISHs-Moving from Consumption Expenditure to Actual Consumption-Gross Fixed Capital Formation-Changes in Inventories-Net Acquisitions of Valuables-Exports and Imports of Goods and Services-ExercisesChapter 6. The Household Account-The Three Indicators in the Household Account-The Household Sector Accounts-An Alternative Way to Measure Household Disposable Income and Consumption-ExercisesChapter 7. Business Accounts-The Relationship between the Firm and the Corporation-The Structure of Corporate-Sector Accounts-From Corporations to Firms-Consumption of Fixed Capital and Amortisation-Profits and Gross Operating Surplus: Not to be Confused-ExercisesChapter 8. The Financial and Balance Sheet Accounts-The Importance of Household Wealth for the Analysis of the Current Economic Situation-The Principle of Quadruple-Entry Bookkeeping-Financial Assets and Liabilities-The Link between Financial Flows and Stocks-Non-Financial Assets-The Complete Sequence of Accounts of an Institutional Sector-ExercisesChapter 9. The General Government Account-A Simplified Diagram for General Government-Detailed Structure of the General Government Account-What Does General Government Include?-The Principal Public-Finance Indicators-ExercisesChapter 10. The Input-Output Table and Integrated Economic Accounts-The Supply-and-Use Tables-The Aggregated Supply and Final Uses Tables-Intermediate Use Table-The Input-Output Table-The Use of the Input-Output Table for Economic Analysis-From the Sum of the Values Added to GDP-The Integrated Economic Account-The Transition from GDP to National IncomeExercisesChapter 11. The National Accounts Machinery-The Quarterly National Accounts-The Annual National Accounts-The Revisions to the National Accounts and their Precision-Comprehensive Revisions-Other Data Sets Related to the National AccountsExercisesChapter 12. The National Income and Product Accounts of the United States-Background-NIPA Tables-Dissemination of NIPAs-Other NIPA-Related Programmes-Compilation of Quarterly Gross National Product-Methodologies for Preparing Selected Components of GDP-Differences between the NIPA and the SNAChapter 13. China's National Accounts-Introduction-Background-Published National Accounts-Publication Schedule-Classification-Ownership-Data Sources-How is GDP Estimated?-GDP by Type of Economic Activity-Final Expenditure Share of GDP-Estimates at Constant PricesChapter 14. India's National Accounts-Introduction-Background-Some Special Features of India's National Accounts-How Does the CSO Estimate the National Accounts?-Publication of National Accounts-Where to Find Data on India's National AccountsChapter 15. International Systems of National Accounts: Past and Future-From the Very Beginnings-To the First Modern Accounts-The 1953 SNA-The 1968 SNA-The 1993 SNA-The 1996 ESA-And the Upcoming 2008 SNAIndexGlossary