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Net output is an accounting concept used in national accounts such as the United Nations System of National Accounts (UNSNA) and the NIPAs, and sometimes in corporate or government accounts. Measures of national income and output are used in economics to estimate the value of goods and services produced in an economy. ...
The United Nations System of National Accounts is an international standard system of social accounts, first published in 1953. ...
See NIPA (disambiguation) for other meanings of the word. ...
Definition
In national accounts, net output is equivalent to the gross value added during an accounting period when producing enterprises use inputs (labor and capital assets) to produce outputs. Gross value added is called "gross" because it includes depreciation charges or Consumption of fixed capital. Included in net output may also be inventories of unsold outputs, valued at average market prices. Net output is sometimes also calculated in terms of physical product units which can be sold. This article needs to be cleaned up to conform to a higher standard of quality. ...
Derivation Net output is obtained by subtracting the value of intermediate goods and services from the Gross Output of enterprises. Intermediate consumption is an economic concept used in national accounts, such as the United Nations System of National Accounts (UNSNA) and the US National Income and Product Accounts (NIPA). ...
Gross Output is an economic concept used in national accounts such as the United Nations System of National Accounts (UNSNA) and the US National Income and Product Accounts (NIPA). ...
This involves an accounting procedure of "grossing and netting" the revenues which enterprises obtain from their outputs of goods and services, in order to establish what the real value of those outputs is.
This procedure must consistently identify and distinguish between costs and revenues, and between materials or services used up, fixed assets and new outputs. In national accounts, this is especially important because the inputs of one enterprise are the outputs of another, and vice versa; lacking a consistent procedure, double counting would result. In turn, the "grossing and netting" procedure assumes a value theory and a definition of the coverage of production. Once we have that, we can aggregate a multitude of prices to obtain a price for the total value of net output. Double-counting is a term used to refer not simply to a math problem, but to a conceptual problem in social accounting practice, when the attempt is made to estimate the new value added by Gross Output, or the value of total investments. ...
Value theory concerns itself with the worth, utility, trading or economic value, moral value, legal value, quantitative or aesthetic value of people and things - or the combination of all these. ...
Components of net output The value of an aggregate net output is normally understood to be equal to the sum of In calculating net output for national accounts, government subsidies received by producing enterprises are normally subtracted from tax levies paid by them during the same accounting period. Compensation of employees (CE) is a statistical term used in national accounts and sometimes in corporate accounts as well. ...
This article needs to be cleaned up to conform to a higher standard of quality. ...
Operating surplus is an accounting concept used in national accounts statistics (such as United Nations System of National Accounts (UNSNA) and in corporate and government accounts. ...
Net output and GDP The total net output of resident producers in a national economy is equal to Gross Domestic Product or GDP. Included in this total is the productive activity of government agencies and certain income-generating activities of households. In economics, gross domestic product (GDP) is a measure of the value of economic production of a particular territory in financial capital terms during a specified period. ...
Usually the term "net output" is used to refer to the contribution which a particular economic sector (for example, agriculture, manufacturing, business services etc.) makes to total value added or GDP during a quarter or a year.
Input-output analysis In input-output analysis, disaggregated data on gross and net outputs of different economic sectors and sub-sectors is used to study the transactions between them. Thus, for example, a sector purchases inputs from several other sectors and sells outputs to several other sectors. By identifying the quantities of input and output involved, we can estimate what the effect will be of fluctuations in business activity within one sector, or group of sectors on the economy as a whole. This article is about the economic model, for the computer interface see Input/output An input-output model is widely used in economic forecasting to predict flows between sectors. ...
Criticism As mentioned, the calculation of net output requires a value theory, a way of grossing and netting, and techniques for aggregating the prices of transaction volumes in a consistent way. Obviously, there are many different ways of going about this, but normally a legal framework limits the number of variations possible or permitted (business accounts have to be audited and so on, to guarantee a fair statement of business operations within the law of the land). Nevertheless, the procedure for establishing net output can be contested. Value theory concerns itself with the worth, utility, trading or economic value, moral value, legal value, quantitative or aesthetic value of people and things - or the combination of all these. ...
In Marxian economics, the value product is offered as an alternative output measure, reflecting the new value produced by living labor. But there is also an ecological criticism that is sometimes made. Marxian economics refers to a body of economic thought stemming from the work of Karl Marx. ...
The value product (VP) is an economic concept formulated by Karl Marx in his critique of political economy during the 1860s, and used in Marxian social accounting theory for capitalist economies. ...
(Ecology is sometimes used incorrectly as a synonym for the natural environment. ...
The argument here is that, in calculating net output, costs and results are only assessed in price terms. Therefore, inputs to production and outputs which are not priced, are excluded in the valuation. Yet those inputs and outputs may nevertheless have an economic or human value, regardless of whether a price could be imputed to them or regardless of whether they can be made an object of trade.
If the air is polluted, or depletion of fish stocks in the open seas occurs, the cost of repairing that is not accounted for in the net output of polluters or fishing companies. Sometimes tax levies are therefore imposed. Nowadays the Kyoto protocol has inspired "emissions trading", where the right to pollute is bought and sold, which some regard as a strictly perverse activity. Others however argue it proves the ability of competitive markets to solve any problem of resource allocation (see also Flatulence). A tax is a compulsory charge or other levy imposed on an individual or a legal entity by a state or a functional equivalent of a state (e. ...
Kyoto Protocol Opened for signature December 11, 1997 at Kyoto, Japan Entered into force February 16, 2005. ...
Flatulence is a mixture of gases that are produced by symbiotic bacteria and yeasts living in the gastrointestinal tract of mammals, and aerosolized particles of feces, and it is released under pressure through the anus with a characteristic sound and odour. ...
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