REASONS FOR PREFERRING NET TO GROSS FIGURES OF INCOME AND PRODUCT (AND VICE VERSA)

Frits Bos

Review of Income and Wealth, 1992, vol. 38, issue 3, 267-279

Abstract: For the first time, a systematic discussion is presented of the choice between gross and net national accounting figures of value added, product and income for alternative purposes. Some traditional arguments for preferring gross to net figures are challenged and several historical reasons are given for the present popularity of gross figures. The quantitative importance of the issue (“what does it matter in practice?”) is also assessed.

Date: 1992
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