The National Income and Production Accounts (NIPAs) track transactions between seven sectors of the economy. Each transaction represents a use of funds for one sector and a source of funds for another sector.
Sectors
Gross Domestic Product
xx
Private Enterprise
Private businesses and the accounts of homeowners for owner-occupied housing (which is treated as if it were a business). In addition, the net interest paid by nonprofit institutions serving households is included as a use of income in this account. (Government enterprises are not included.)
Production by all entities that produce goods and services for sale at a price intended at least to approximate the costs of production, corporate and noncorporate private entities organized for profit, and certain other entities that are treated as business in the NIPAs. (These entities include mutual financial institutions, private noninsured pension funds, cooperatives, nonprofit organizations (that is, entities classified as nonprofit by the Internal Revenue Service (IRS) in determining income tax liability) that primarily serve business, Federal Reserve banks, federally sponsored credit agencies, and government enterprises.) Gross value added of the business sector is measured as GDP less the gross value added of households and institutions and of general government.
For the domestic business sector, income and its components are shown for corporate business and noncorporate business. Noncorporate business, in turn, comprises sole proprietorships and partnerships, other private business, and government enterprises (employee compensation and current surplus of enterprises).
· Corporate business: This legal form comprises all entities required to file Federal corporate tax returns (IRS Form 1120 series). These entities include mutual financial institutions and cooperatives subject to Federal income tax, nonprofit institutions that primarily serve business, Federal Reserve banks, and federally sponsored credit agencies.
· Sole proprietorships: This legal form comprises all entities that would be required to file IRS Schedule C (Profits or Loss from Business) or Schedule F (Farm Income and Expenses) if the proprietor met the filing requirements.
· Partnerships: This legal form comprises all entities required to file Federal partnership income tax returns, IRS Form 1065 (U.S. Partnership Return of Income).
· Other private business: This legal form comprises all entities that would be required to report rental and royalty income on the individual income tax return in IRS Schedule E (Supplemental Income and Loss) if the individual met the filing requirements, tax-exempt cooperatives, and buildings and equipment and software owned and used by NPISHs.
· Government enterprises are government agencies—such as the U.S. Postal Service or state government-run utilities—that cover a substantial portion of their operating costs by selling goods and services to the public.
· Government enterprises: This legal form consists of government agencies that cover a substantial proportion of their operating costs by selling goods and services to the public and that maintain their own separate accounts. A “mixed” treatment of government enterprises is used in the NIPAs: Some types of transactions are recorded as if they were part of the business sector, and others are recorded as if they were part of the general government sector. The following transactions of government enterprises are treated like those of businesses and included in the NIPA business sector:
1. Their sales to final users are recorded as sales by businesses,
2. their purchases of materials and business services are considered intermediate, and
3. their compensation payments and CFC are deducted in calculating their income.
Within the business sector, government enterprises are classified as noncorporate businesses.
· Other transactions of government enterprises are treated like those of other government agencies:
1. Their interest payments are combined with those of general government rather than those of business,
2. their investment in equipment and software and in structures is combined with general government investment rather than with business investment in gross private domestic investment, and
3. their profit-like income, the current surplus of government enterprises, accrues to general government.
Persons
Individuals, nonprofit institutions that primarily serve households, private noninsured welfare funds, and private trust funds.
The households and institutions sector comprises households and nonprofit institutions serving households (NPISHs). The gross value added of households is measured by the services of owner-occupied housing and the compensation paid to domestic workers. The gross value added of NPISHs is measured by the compensation paid to the employees of these institutions, the rental value of fixed assets owned and used by these institutions, and the rental income of persons for tenant-occupied housing owned by these institutions.
Households are treated as businesses for the purpose of recording the ownership of and investment in housing.
Government
The government sector comprises all Federal Government and state and local government agencies except government enterprises. The gross value added of general government is measured as the sum of the compensation of the employees of these agencies and of their CFC.
Governments play many roles in the economy, and the NIPAs provide measures related to at least four of these roles. These include
· providing nonmarket services for consumption by the general public,
· investing in assets to provide infrastructure for the economy,
· providing social benefits to individuals in society, and
· contributing to domestic saving and investment.
Rest of the World
Foreign residents who are transactors with U.S. residents.
Domestic Capital
xx
Foreign Capital
xx
Accounts
Accounts track specific types of transactions between sectors. Below is a list of accounts by sector. Each account appears twice: once as a use of funds and once as a source of funds. (Some accounts appear twice as the same type — source or use. These accounts are netted against another account, and one of the two entries is subtracted rather than added.)
This table is slightly modified from the standard NIPA table format. The standard table includes accounts for transactions between multiple sectors. These accounts show transactions between individual sectors.
[income sheets]
GDP | |
Sources | Uses |
Consumption | Compensation |
Consumption: Persons to GDP | Wage and Salary: GDP to Persons |
Consumption: Government to GDP | Wage and Salary: GDP to ROW |
Domestic Investment | Wage Accruals less Disburs. (private): GDP to Government |
Fixed Investment: Domestic Capital to GDP (non-government) | Wage Accruals less Disburs. (private): GDP to Dom. Capital |
Fixed Investment: Domestic Capital to GDP (government) | Employer Contr. for Employee Pension/Ins.: GDP to Persons |
Change in Private Inventories: Domestic Capital to GDP | Employer Contr. for Govt Social Insurance: GDP to Persons |
Net Exports of Goods and Services | Taxes (net) |
Export Payments: ROW to GDP | Taxes on Production and Imports: GDP to Government |
- Import Payments: GDP to ROW | - Subsidies: Government to GDP |
Net Operating Surplus | |
Net Operating Surplus: GDP to Private Enterprise | |
Current Surplus of Govt Enterprises: GDP to Government | |
Consumption of Fixed Capital: GDP to Domestic Capital | |
Statistical Discrepancy: GDP to Domestic Capital | |
Private Enterprise (partial) | |
Sources | Uses |
Net Operating Surplus: GDP to Private Enterprise | Income Payments on Assets - Private Enterprise Uses |
Income Receipts on Assets - Private Enterprise Sources | Interest: Private Enterprise to Persons |
Dividends: ROW to Private Enterprise | Interest: Private Enterprise to Government |
Reinvested Earnings: ROW to Private Enterprise | Dividends: Private Enterprise to Persons |
Dividends: Private Enterprise to Government | |
Dividends: Private Enterprise to ROW | |
Reinvested Earnings: Private Enterprise to ROW | |
Transfer Payments | |
Transfer Payments: Private Enterprise to Persons | |
Transfer Payments: Private Enterprise to Government | |
Transfer Payments: Private Enterprise to ROW | |
Proprietors' Income IVA CCA and Rental Income CCA | |
Proprietors' Income IVA CCA: Private Enterprise to Persons | |
Rental Income CCA: Private Enterprise to Persons | |
Taxes | |
Taxes: Private Enterprise (Corporations) to Government | |
Taxes: Private Enterprise to ROW | |
Undistr. Corp Profits IVA CCA: Private Enter. to Dom. Cap. | |
Persons | |
Sources | Uses |
Compensation | Taxes: Persons to Government |
Wage and Salary: GDP to Persons | Consumption: Persons to GDP |
Wage and Salary: ROW to Persons | Personal Interest Payments |
Employer Contr. for Employee Pension/Ins.: GDP to Persons | Interest: Persons to Persons |
Employer Contr. for Govt Social Insurance: GDP to Persons | Interest: Persons to ROW |
Proprietors' Income IVA CCA and Rental Income CCA | Personal Current Transfer Payments |
Proprietors' Income IVA CCA: Private Enterprise to Persons | Transfer Payments: Persons to Government |
Rental Income CCA: Private Enterprise to Persons | Transfer Payments: Persons to ROW |
Income Receipts on Assets - Personal Sources | Saving: Persons to Domestic Capital |
Interest: Private Enterprise to Persons | |
Interest: Persons to Persons | |
Interest: Government to Persons | |
Interest: ROW to Persons | |
Dividends: Private Enterprise to Persons | |
Social Benefits Transfers and Social Ins. Contributions (net) | |
Social Benefits Transfers: Government to Persons | |
- Social Insurance Contributions: Persons to Government | |
Transfer Payments: Private Enterprise to Persons | |
Government | |
Sources | Uses |
Taxes | Consumption: Government to GDP |
Taxes: Persons to Government | Interest: Government to Persons |
Taxes on Production and Imports: GDP to Government | Social Benefits Transfers: Government to Persons |
Taxes: Private Enterprise (Corporations) to Government | Other Government Expenditures |
Taxes: ROW to Government | Social Benefits Transfers: Government to ROW |
Social Insurance Contributions | Transfer Payments: Government to ROW |
Social Insurance Contributions: Persons to Government | Subsidies: Government to GDP |
Social Insurance Contributions: ROW to Government | - Wage Accruals less Disburs. (private): GDP to Government |
Income Receipts on Assets - Government Sources | Saving: Government to Domestic Capital |
Interest: Private Enterprise to Government | |
Dividends: Private Enterprise to Government | |
Transfer Payments | |
Transfer Payments: Private Enterprise to Government | |
Transfer Payments: Persons to Government | |
Current Surplus of Govt Enterprises: GDP to Government | |
Rest of World | |
Sources | Uses |
Import Payments: GDP to ROW | Export Payments: ROW to GDP |
Wage and Salary: GDP to ROW | Wage and Salary: ROW to Persons |
Income Payments on Assets - ROW Uses | Income Receipts on Assets - ROW Sources |
Interest: Persons to ROW | Interest: ROW to Persons |
Dividends: Private Enterprise to ROW | Dividends: ROW to Private Enterprise |
Reinvested Earnings: Private Enterprise to ROW | Reinvested Earnings: ROW to Private Enterprise |
Transfer Payments | |
Transfer Payments: Persons to ROW | |
Transfer Payments: Government to ROW | |
Transfer Payments: Private Enterprise to ROW | |
Taxes | |
Taxes: Private Enterprise to ROW | |
- Taxes: ROW to Government | |
Net Social Insurance Contr. and Social Benefits Transfers | |
- Social Insurance Contributions: ROW to Government | |
Social Benefits Transfers: Government to ROW | |
Balance on Current Account, NIPAs: Foreign Capital To Row | |
Domestic Capital | |
Sources | Uses |
Saving | Gross Domestic Investment |
Wage Accruals less Disburs. (private): GDP to Domestic Cap. | Fixed Investment: Domestic Capital to GDP (non-government) |
Undistr. Corp. Profits IVA CCA: Private Enter. to Dom. Cap. | Fixed Investment: Domestic Capital to GDP (government) |
Saving: Persons to Domestic Capital | Change in Private Inventories: Domestic Capital to GDP |
Saving: Government to Domestic Capital | Capital Account Trans.: Dom. Capital to Foreign Capital |
Consumption of Fixed Capital: GDP to Domestic Capital | Net Lend./(Borrowing), NIPAs: Dom. Cap. to Foreign Cap. |
Statistical Discrepancy: GDP to Domestic Capital | |
Foreign Capital | |
Sources | Uses |
Capital Account Trans.: Domestic Capital to Foreign Capital | Balance on Current Account, NIPAs: Foreign Cap. To Row |
Net Lend./(Borrowing), NIPAs: Dom. Cap. to Foreign Cap. |
