--- William Dickens <[EMAIL PROTECTED]> wrote: > >Economic income is consumption plus the change in net worth > > Not in national income and product accounts.
Right. National income "accounts" track *accounting* income, not *economic* income. The economic meaning of income is the Haig-Simmons meaning, consumption plus the change in wealth. > Further, if you want savings to be equal to the flow of investment in the > NIPA then you can't include change in asset value in your income > calculation. Right. For the economy, a change in asset value is not income, because the increase in income to the owner is offset by a liability for the rest of society, since the next buyer will have to give up more assets to acquire the appreciated asset. Fred Foldvary ===== [EMAIL PROTECTED]
