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In a closed economy, savings equal investment. Your equation actually shows this. We have: $Y−(C+G) - I = 0$. Note that savings, by definition, is just equal to the production $Y$ that is not consumed. Here we have consumption by private citizens $C$ and consumption by the Government $G$. Therefore, savings $S$ is: $S = Y - (C+G)$ and therefore: $S=I$ ...


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GNI is GDP plus net primary income from abroad Any such numbers are subject to revision as more information is obtained; in many countries such numbers are typically revised every three months as part of a National Accounts and Balance of Payments update, with more substantial revisions annually. Korea's latest update was published on 28 March The fact ...


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So, if there is no abroad (i.e. the economy is a closed one or what is called an autarky), then GNI = GDP. Source: UN System of National Accounts (2008, p. 333).


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The degree of precision with which the various terms for these economic aggregates are used may vary with the context. But if one is trying to be strictly correct, three distinctions should be borne in mind: Gross v Net: net meaning net of a deduction for depreciation of capital. Domestic v National: national being inclusive of net property income from ...


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The reference is World Bank (2006). You can see the detail of the methodology in Appendix 1, and their estimates of intangible wealth in Appendix 2. There are other methodologies to measure intangible wealth (e.g. here and here). Alternatively, there are many ways to compute natural and physical capital, which will give different results to the one given ...


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"If a firm produces 1000 shirts (finished products), expecting to keep an inventory of 100 shirts at the end of the year." Here Why a firm keep an inventory of 100 shirts ? Expectation is different than preference. A company might prefer to sell everything, yet be realistic enough to rule out the scenario of being able to sell its entire merchandise this ...


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The disparity exists because a high income taxes level income inequality but do little to fix wealth inequality. Wealth inequality is always higher than labor income inequality, due to income originated from wealth (or capital income), such as rents, dividends or royalties and the increase of asset values [6]. This source of income accounts for a large ...


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It is included. It is a transfer payment, so the trick is to ensure that the income flow is only counted one time in the national accounting. Statistics Canada, National Gross Domestic Product by Income and by Expenditure Accounts link to description The Income and Expenditure Accounts record the distribution and use of income by the six main ...


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Generally, whenever people have more income, it doesn't only benefit those people with more income. Imagine you somehow received \$100 that fell from the sky (or through NASA job). Would you save the entire \$100 and never spend it? More likely, you would spend some fraction of it... let's say you spend \$60. This money you spend will go to a shopkeeper, who ...


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You largely answered this question yourself: you provided this reference to a Gennero Zezza paper: (link to paper) Zezza states in the second paragraph that most of the thinking about the Paradox of Profits was mistaken, as the authors used models which were not stock-flow consistent (flows disappeared). If people are arguing that there is a paradox, but do ...


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I have actually found an answer to my own question. In case anyone's interested, I found the data on the top 10%'s income share going back to 1913 on dr. Mark Frank's website - he collaborated on the construction WID. I suppose the series have gone missing / were excluded for some reason on the WID's platform? https://www.shsu.edu/~eco_mwf/inequality.html


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GNI is simply a new name for GNP. It is GDP plus net primary income from abroad (i.e. with primary income paid abroad treated as negative). Primary income is described in Chapter 11 of the IMF BOP manual GNDI is GNI plus net secondary income from abroad (and similarly secondary income paid abroad is treated as negative). Net secondary income from abroad is ...


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Statistical Agencies do not necessarily obey the habits of Economic Theory. There is no "mistake" here (certainly, there is no double-counting), but a different approach to what each concept means or "should mean" (which sometimes is also a consequence of historical precedence). For the fun of it I post below how the same data could be arranged to conform ...


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I suspect that you are looking at an economic description which contrasts factor incomes with current transfers. That is slightly old fashioned, and the contemporary terms are primary income and secondary income in the balance of payments accounts (a similar change in the national accounts involved going from what was called GNP to GNI - gross national ...


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The role of 45 degree line while showing a consumption function is that the 45 degree line translates the values on x-axis to equal values on y-axis. The consumption function is drawn on an income and aggregate expenditure plane. Hence the 45 degree line shows consumption + savings which is aggregate output or aggregate supply or income. The other way to ...


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Consider that the following production function $Y=F(K,L)$ excibits constant returns to scale ie $F(x K, x L)=x F(K,L)$, for any arbitrary scalar $x$. This means in plain English that eg for $x=2$, doubling the inputs will produce double the output. The intuition behind constant returns to scale is that inputs and outputs are directly proportionate. In ...


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A concrete example makes it easier to think about: Let's say during the week you receive \$1000 income. Only 3 things can happen to your $1000: You could be taxed some/all of it (T: Tax) You could spend some/all of it (C: Consumption) You could save some/all of it (S: Savings) In this example we've used your $1000 income. The distribution of income (Y = ...


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