| Abstract: | This paper develops a rationale for a comprehensive measure of income and provides illustrative calculations within the Canadian System of National Accounts for making adjustments to net worth for price changes.
The paper notes that the System of National Accounts is designed to provide a number of individual aggregates measuring total production, income, savings and net worth. There is no single overall comprehensive measure which reflects the combined effect of changes in income and wealth. Such a measure is of particular importance in periods of rapid or extensive price changes which affect not only purchasing power of income but also the value of assets held and liabilities outstanding with consequences on net worth positions. This paper explores these issues and develops techniques for measuring the effects of specific and overall price changes with respect to net worth of the various sectors in the economy, illustrated with data from the integrated Canadian System of National Accounts. |
