The total incomes system of accounts

Abstract

Conventional measures of national income and product and its components have proved enormously useful as indexes of economic activity and as the empirical foundations of much of macroeconomic analysis. Robert Eisner's The Total Incomes System of Accounts (TISA) brings critical new dimensions to those measures. It offers systematic extensions and expansions in an effort to count all of the output that goes into economic well-being, now and in the future. Eisner counts nonmarket as well as market production, including vast amounts of services produced by housewives and others in the home, capital formation by government and households as well as business, human and intangible capital invested in education, R&D, and health care, as well as tangible capital. He offers measures of net revaluations of tangible assets, redefines the critical boundaries between final and intermediate outputs, and presents separate sector accounts for business, nonprofit institutions, government, government enterprises and households, which make clear the major contributions of nonbusiness sectors to our total national income. For these and other extensions, Eisner's TISA offers detailed and comprehensive income and product accounts in current dollars and product accounts in constant dollars for all of the years from 1946 to 1981, along with measures of capital stocks. Estimates of consumption, investment, and production functions with the new data sets, a review of other sets of extended accounts, and a detailed description of sources and methods are also provided.