Integrated economic accounting

Summary The object of the paper is to present micro and macro accounting as an integrated conceptual body, logically derived from a limited number of basic assumptions. The are applied to an economy with five micro economic units: Households, Industries, Banks, Government and Rest of the World. The basic macro economic statement -to be called the National Transactions Table - is obtained as a systematic organization and consolidation of all the micro statements. The first macro statement derived from the National Transactions Table is the Generalized Equation of Exchange. With this, Fisher's Equation of Exchange is given, first, a logical foundation, second, its correct formulation both for its aggregated and disaggregated forms, and finally, the place that naturally corresponds to it in a social accounting system. Leaving for a moment the logical derivation of the macro accounting statements, some of the properties of the Generalized Equation of Exchange are explored. In particular, the properties of the sectoral velocities of circulation are analized. Returning to the accounting aspects of the study, the Flow of Funds, Input -Output, Income and Product and Savings and Investment statements are derived from the National Transactions Table and some of their properties are explored.The author wishes to express his appreciation to Prof. G. Gruver, Department of Economics, University of Pittsburgh, and to his students Mr. and Mrs. H. Braslavsky, for their cooperation in the preparation of this paper.