A History of National Accounting by A. Vanoli

By A. Vanoli

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The link between the accounts of each sub-sector is sometimes a complex issue. For instance, for productive enterprises, the surplus o f the appropriation account enters the reserve account and then, once combined with the net financial transactions, passes on to the capital account. Another case is that of realised net capital gains, recorded only for business enterprises, which appear in the reserve account, and are transferred to the appropriation account, from where they return to their point o f origin as part o f the net result of this account, finally to be sent to the capital account with the other financing means.

Phyllis Deane and Richard Stone provide their answers to this question: Phyllis Deane writes: (“The implications of early national income estimates for the measurement of long-term economic growth in the United Kingdom”, op. cit. p. * Then an unusual combination of circumstances yielded a stock of economic and statistical data which was more complete than any which had preceded it and more systematically and informatively analysed than any which was produced for the next century. An important factor in this new combination of circumstances was the spirit of the age.

This net product is the difference between total agricultural output (5 billion) and the advances made (2 billion o f annual advances and 1 billion of interest or replacements of “avances primitives”: the working capital). This scheme, briefly summarized here, shows the first analysis of the economic circuit in terms of both flows o f value and flows of goods among large groups o f the society, an anticipation of what will be done in the 20th century. At the same time, the notion of productive activity as the activity capable o f creating a Chapter I.

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A History of National Accounting by A. Vanoli
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