By R. Allen
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Extra resources for An Introduction to National Accounts Statistics
What does get in the box is all rents on ren ted dwellings and non-trading properties, all imputed rents of owner-occupied dwellings and all imputed charges for owner-occupied non-trading properties. They are included either under housing in consumers' expenditure or (for government non-trading property) under government final consumption. 1 Introduction The tabulation of this chapter are designed to show the way in which GDP at factor cost, or one of its variants, is built up from its main components on the output, income and expenditure sides.
The first is correct; the second is inconsistent and needs to be put right. The adjustment to the income and output measures is: first deduct (B) as incorrectly included and then add the correct (A). The net deduction is (B)-(A), given the label stock appreciation. It represents that part of the increase in book values of stocks which arises from price movements rather than from physical 34 An Introduction to National Accounts Statistics changes in stocks held. It is positive when prices are generally rising, the case usually found in practice.
The line drawn between current goods and services and those which are additions to wealth is somewhat arbitrary; consumer durables shade off into capital goods. The conventional line is drawn so that capital goods inc1ude dwellings and an non-trading property such as schools and hospitals as wen as the vast range oftrading plant and equipment. Hence consumers' expenditure covers rents of dwellings and purehases of an consumer durables except new housing. It also inc1udes ren tals paid to the service trades of car hire and TV and radio renting.
An Introduction to National Accounts Statistics by R. Allen