Net national income

The net national income (NNI, until the introduction of the European System of Integrated Economic Accounts in 1995, net national product (NSP ) called ) is a statistical value of the national accounts, which in a certain period of time (often a year) is to characterize the economic performance of an economy and especially serves as an income indicator.

A distinction is made (similar to the domestic product ) between the net national income at market prices and net national income at factor cost.

Net national income at market prices (even primary income ) results from the equally valued with market prices gross national income by deducting depreciation or out of the net domestic product at market prices by adding the balance of the acquisition and investment income paid to foreign countries or bought from abroad:

Net national income at factor cost ( = cost ) is calculated from the net national income at market prices by subtracting the taxes on products ( production and imports) and addition of the subsidy or out of the net domestic product at factor cost by summation of the balance of acquisition and investment income and is also known as national income:

Finally increases the net national income transfers ( transfers) from the rest of the world and reduces it to the transfers to the rest of the world, you get the disposable income of the residents of an economy.

In the figure, the gross national income is equal to 100%. Excluding the write-downs (top size, purple ) yields the net national income at market prices. Net national income without the balance of taxes and subsidies on products ( second from the top size, black tiled ) gives the net national income at factor cost or national income.

• National Accounts
• Macroeconomic indicator
• Income