NA/75 Economic theory and national accounting

15-6-2006 13:47

Bos, Frits (1995).This paper describes the relationship between economic theory and national accounting. This relationship is often misunderstood, by economic theorists and national accountants alike. Attention is drawn to the consistency required in a national accounting system, to national accounts figures as a transformation of primary data and to the fundamentally different valuation principles employed in economic theory and national accounting (forward looking and analytic versus backward looking and descriptive). The gap between economic theory and national accounting can only be bridged by satellite accounts, as in these accounts consistency with the overall system and valuation at current exchange value are not strictly required.

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