(1) Gross Domestic Product is a measure of all currently produced final goods and services evaluated at
market prices.
GDP = Consumption (C) + Gross Investment (I) + Government Spending (G) + Net Exports (NX)
Gayri Safi Yurtiçi Hasıla
(2) Gross National Product (GNP) measures the total income earned by residents of a nation:
GNP = GDP + Net Factor Income From Abroad
Gayri Safi Milli Hasıla = Gayri Safi Yurtiçi Hasıla + Net Faktör Geliri (ya da Net Dış Alem Geliri)
A note: Sources of factor income are wages, profit and rent.
(3) Net National Product (NNP) is GNP net of the capital stock used up:
NNP = GNP − Depreciation
Safi Milli Hasıla = Gayri Safi Milli Hasıla – Amortisman
A note for the meaning of Depreciation: Depreciation is the amount of the economy’s stock of fixed capital (plants,
equipment, and residential structures) that wears out during the year. Sometimes, depreciation is called the capital
consumption allowances. Because the depreciation of capital is a cost of producing the output of the economy, subtracting
depreciation shows the net result of economic activity.
(4) National Income (NI) is NNP net of amounts that are not passed on as factor incomes (after corrected for
the statistical discrepancy). However, it is also defined as the sum of the earnings of all factors of production
(land, labor and capital) that come from current production:
NI = NNP − Indirect Business Taxes – Business Transfer Payments + Subsidies – Statistical Discrepancy
Safi Milli Gelir = SMH − Dolaylı Vergiler + Sübvansiyonlar
Notes:
(i) National income is exactly equivalent to what the net production of goods and services would sell for on the market if
there were nothing else added to the prices of goods and services; it is therefore a measure of the net value of products
measured at factor cost. However, the prices at which goods are exchanged in markets do include indirect taxes such as
sales tax, value added tax and excise tax. Therefore, Indirect Business Taxes taxes are substracted from the net national
product at market prices to obtain the national income at factor cost.
(ii) Business transfer payments are mainly business gifts to nonprofit foundations and writeoffs of bad debts.
(iii) Statistical discrepancy is the difference between GNP measured on the income and product sides due to the fact that
the statistical bases for the two measurements are independent of each other.
NI = Compensation of employees + Proprietors’ income + Rental income of persons + Corporate profits
+ Net interest income
MG = Ücret ve maaş gelirleri + Teşebbüs ve serbest meslek gelirleri + Kira gelirleri + Şirket kârları
+ Net faiz gelirleri
A note for the definitions of the types of factor income:
•
Compensation of employees: The wages and salary payments as well as supplementary benefits earned by workers.
•
Proprietors’ income: The income of non-corporate businesses, such as small farms, mom-and-pop stores, and law
partnerships.
•
Rental income of persons: The income that landlords receive, including the imputed rent that homeowners “pay” to
themselves, less expenses, such as depreciation.
•
Corporate profits: The income of corporations after payments to their workers and creditors.
•
Net interest: The interest domestic businesses pay minus the interest they receive, plus interest earned from
foreigners.
(5) Personal Income (PI) is a measure of income received by persons from all sources. Elements of national
income that are not received by persons are subtracted while the income of persons obtained from sources other
than current production of goods and services are added to the National Income:
PI = NI – (Corporate Profits - Dividends) + (Government and Business Transfers to Individuals - Social
Insurance Contributions paid to the government) + (Personal Interest Income - Net Interest Income)
Kişisel Gelir= Milli Gelir – (Şirket kârları – Temettüler) + (Transfer Ödemeleri – Emekli kesenekleri ve sosyal
sigorta aidatları) + (Kişisel faiz gelirleri – Net faiz gelirleri)
Note that since the amount of “Corporate Profits” are equivalent to the sum of corporate taxes, dividend payments and
retained earnings, “Dividends” are added to NI in calculating the PI.
Note that “Net Interest Income” is deducted from NI because it represents interest income of corporations, not that of
persons.
(6) Disposable Personal Income (DPI) is the personal income net of personal tax payments and certain nontax
payments to the government:
DPI = PI - Personal Tax and Non-tax Payments
Harcanabilir Kişisel Gelir = Kişisel gelir – Kişilerin ödediği vergiler ve vergi benzeri ödemeler