The use of income accounts

The purpose of the use of income accounts is to show how households, government units and non-profit institutions serving households (NPISHs) allocate their disposable income between final consumption and saving. Throughout this chapter, unless otherwise stated, the expression consumption should be taken to mean final consumption. There are two use of income accounts that correspond to two concepts of disposable income and consumption. In the first account, the use of disposable income account, shown in table 9.1, attention is focused on disposable income and the expenditure on consumption goods and services that can be met out of that income. In the second account, the use of adjusted disposable income account, shown in table 9.2, attention is focused on the consumption goods and services acquired and used by institutional units, especially households, whether acquired by expenditure or by social transfers in kind. To explain the difference between the two accounts it is necessary to define some key terms.

Related Subject(s): Economic and Social Development