4.1.1—National income

National income is the income earned by the factors of production from current production during a period. In the national accounts, it corresponds in principle to the value of output and expenditure after the relevant adjustments.

The flow must be dated and measured consistently. Domestic and national concepts differ according to whether factor income crosses borders.

Wages, rent, interest and profits generated by production over one year contribute to national income, even though the underlying assets are stocks.

National income is not national wealth, and it is not simply the government’s tax revenue.