Net national product
Net national product (NNP) is
Closely related to the concept of GNP is another concept called NNP of a country. NNP is a more accurate measure of total value of goods and services by a country. It is derived from GNP figures. As a rough estimate, GNP is very useful indicator of total production of a country. But if we are interested to have an accurate and true measure of what a country is producing and what is available for uses, then GNP has a serious defect.
In
Use in economics
Although the net national product is a key identity in national accounting, its use in economics research is generally superseded by the use of the gross domestic or national product as a measure of national income, a preference which has been historically a contentious topic (see e.g. Boulding (1948)[3] and Burk (1948)[4]). Nonetheless, the net national product has been the subject of research on its role as a dynamic welfare indicator[5] as well as a means of reconciling forward and backward views on capital wherein NNP(t) corresponds to the interest on accumulated capital.[6] Furthermore, the net national product has featured prominently as a measure in environmental economics such as within models accounting for the depletion of natural and environmental resources[7] or as an indicator of sustainability.[8]
See also
References
- ^ Krugman, P.R., Obstfeld, M., Melitz, M.J. (2012). International Economics: Theory & Policy (9th ed.). Harlow (UK): Pearson Education Limited, p. 327.
- ^ Burda, M., Wyplosz, C. (2013). Macroeconomics: A European Text (6th ed.). Oxford (UK): Oxford University Press, p. 39.
- ^ Boulding, K.E. (1948). Professor Tarshis and the State of Economics. The American Economic Review, 38(1), pp. 92-102.
- ^ Burk, M. (1948). Mr. Boulding's Criticism of the Net National Product Concept. The American Economic Review, 38(5), pp. 897-898.
- ^ Brekke, K.A. (1994). Net National Product as a Welfare Indicator. The Scandinavian Journal of Economics, 96(2), pp. 241-252.
- ^ Hartwick, J.M. (1994). National Wealth and Net National Product. The Scandinavian Journal of Economics, 96(2), pp. 253-256.
- ^ Hartwick, J.M. (1990). Natural resources, national accounting and economic depreciation. Journal of Public Economics, 43(3), pp. 291-304.
- ^ Asheim, G.B. (1994). Net National Product as an Indicator of Sustainability. The Scandinavian Journal of Economics, 96(2), pp. 257-265.
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