Net national income (NNI) is an economics term used in national income accounting. It can be defined as the net national product (NNP) minus indirect taxes. Net national income encompasses the income of households, businesses, and the government.
It can be expressed as:
NNI = C + I + G + (NX) + net foreign factor income - indirect taxes - manufactured capital depreciation
where:
- C = Consumption
- I = Investments
- G = Government spending
- NX = net exports (exports minus imports)
- NX also can be written as (X-M) which determines current account
This formula uses the expenditure method of national income accounting.
When net national income is adjusted for natural resource depletion, it is called Adjusted Net National Income expressed as below:
NNI* = C + I + G + NX + Net Foreign Factor Income - Indirect Taxes - manufactured capital depreciation - Natural Resource Depletion
Natural resource refers to non-critical natural capital like minerals. NNI* does not take critical natural capital into account. Examples are air, water, land, etc.
For reference, capital (K) is divided into four categories:
- K_m : manufactured capital (machines, factories, etc)
- K_h : human capital (workers' skills)
- K_n : non-critical natural capital (minerals)
- K_h* : critical natural capital (air, water)
Famous quotes containing the words net, national and/or income:
“The violent illiteracies of the graffiti, the clenched silence of the adolescent, the nonsense cries from the stage-happening, are resolutely strategic. The insurgent and the freak-out have broken off discourse with a cultural system which they despise as a cruel, antiquated fraud. They will not bandy words with it. Accept, even momentarily, the conventions of literate linguistic exchange, and you are caught in the net of the old values, of the grammars that can condescend or enslave.”
—George Steiner (b. 1929)
““Five o’clock tea” is a phrase our “rude forefathers,” even of the last generation, would scarcely have understood, so completely is it a thing of to-day; and yet, so rapid is the March of the Mind, it has already risen into a national institution, and rivals, in its universal application to all ranks and ages, and as a specific for “all the ills that flesh is heir to,” the glorious Magna Charta.”
—Lewis Carroll [Charles Lutwidge Dodgson] (1832–1898)
“Happy are those who find wisdom, and those who get understanding, for her income is better than silver, and her revenue better than gold. She is more precious than jewels, and nothing you desire can compare with her. Long life is in her right hand; in her left hand are riches and honor. Her ways are ways of pleasantness, and all her paths are peace. She is a tree of life to those who lay hold of her; those who hold her fast are called happy.”
—Bible: Hebrew, Proverbs 3:13-18.