National Income and Product Accounts

In national economic accounting, production of goods and services that are provided free of charge or for prices that do not significantly influence the amounts that producers supply or that purchasers demand. In the NIPAs, most of the production of nonprofit institutions and of government agencies is nonmarket production. In addition, the term “nonmarket production” is sometimes used to refer to production activities that are outside the scope of the national economic accounts, such as unpaid household work and volunteer labor (see “Production boundary”).

NIPA industry classification that consists of all private industries except those that are classified in the North American Industry Classification System (NAICS) as “financial industries,” which consists of the NAICS industry “finance and insurance” and of bank and other holding companies in the NAICS industry “management of companies and enterprises.”

Portion of federal government consumption expenditures and gross investment that covers activities other than the military activities of the U.S. Department of Defense and the defense-related activities of other government agencies.

In classification by legal form of organization in the NIPAs, noncorporate business comprises sole proprietorships and partnerships, “other” private business, and government enterprises.

See “Current-dollar estimates.”

A measure of the saving that is available for adding to the nation’s net stock of fixed assets or for lending to the rest of the world. It is equal to the sum of personal saving, undistributed corporate profits with inventory valuation and capital consumption adjustments, and net government saving.

See “National income.”

The NIPA balance on current account less net capital transfers to the rest of the world. It may be viewed as an indirect measure of the net acquisition of foreign assets by U.S. residents less the net acquisition of U.S. assets by foreign residents. Net lending or net borrowing is also calculated for each of the major sectors (private domestic business, households and institutions, federal government, and state and local government), where it represents the funds available for the acquisition of financial assets or the borrowing needs of that sector.

Interest paid by private enterprises less interest received by private enterprises, plus interest paid by the rest of the world less interest received by the rest of the world.

The sum of net incomes earned and costs incurred in the production of net domestic product. It is equal to gross domestic income less consumption of fixed capital, and it is also equal to net domestic product less the statistical discrepancy. NDI comprises compensation of employees, taxes on production and imports less subsidies, and net operating surplus.