National Income

This PDF is a selection from an out-of-print volume from the National Bureau of sparing Research

vividness Title: National Income: A Summary of Findings garishness Author/Editor: Simon Kuznets Volume Publisher: NBER Volume ISBN: 0-87014-113-9 Volume URL: http://www.nber.org/books/kuzn46-2 Publication Date: 1946

Chapter Title: pull up stakes IV: Problems of Interpretation Chapter Author: Simon Kuznets Chapter URL: http://www.nber.org/chapters/c5441 Chapter pages in book: (p. 111 - 140)

PART IV

Problems of interpretation
Before study income estimates can be interpreted properly, (a) the basic assumptions underlying them, (b) their statistical accuracy, (c) the significance of their levels, trends, and minuscule term variations must be scrutinized. Under (a) be questions concerning the scene of activities whose results are included in national income; the distinction amidst their gross arid net product; the basis upon which products of unhomogeneous descrip-

tion are evaluated and added; the boundaries of the nation in the definition of national income; and the like.



Under (b)
are questions concerning the statistical approach, the character of the primary or derived data, the validity of the procedures

apply to approximate sectors for which data are lacking, the margin of error in the final estimates. Under (c) are the numerous questions that arise when we exploit to interpret the estimates in the light of other evidence of national
knowledge or processes and interrelations in the economy; the relations between changes in national income totals, their components, and other aspects of the economic system; the causes of the levels or changes, i.e, their connectedness with factors whose effects are known from information other than national income data proper; and so on. These three groups of questions have so far been commented upon only casually, and obviously cannot be analyzed adequately here. In choosing the few that can be, we omit questions under (b) and (c). The...If you destiny to get a full essay, order it on our website: Orderessay



If you want to get a full essay, wisit our page: write my essay .