Macroeconomic Income Measure

A Macroeconomic Income Measure is an economic income measure that is a macroeconomic measure.

• Context:
  • It can range from being Macroeconomic Private Income to being Macroeconomic Public Income.
  • It can range from being Global Income to being National Income to being Municipal Income.
  • It can (often) exclude … the depreciation of the capital that made the income possible.
• Example(s):
  • Economic Capital.
  • a Population Income Measure, such as a City of San Francisco Income Measure.
  • …
• Counter-Example(s):
  • Economic Capital.
  • Labor.
  • a Microeconomic Income Measure, such Organization Income or Household Income.
• See: Factor Income, Land (Economics), Consumer Theory, Law of Demand, Wealth (Economics), Permanent Income Hypothesis, Capital to Income Ratio.

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References

2014

• (Piketty, 2014) ⇒ Thomas Piketty. (2014). “Capital in the Twenty-First Century." Harvard University Press. ISBN:9780674369559
  • QUOTE: It will be useful to begin with the concept of “national income,” to which I will frequently refer in what follows. National income is defined as the sum of all income available to the residents of a given country in a given year, regardless of the legal classification of that income. National income is closely related to the idea of GDP, which comes up often in public debate. There are, however, two important differences between GDP and national income. GDP measures the total of goods and services produced in a given year within the borders of a given country. In order to calculate national income, one must first subtract from GDP the depreciation of the capital that made this production possible: in other words, one must deduct wear and tear on buildings, infrastructure, machinery, vehicles, computers, and other items during the year in question.

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