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AN INTERCOUNTRY COMPARISON OF THE NATIONAL INCOME OF PLANNED ECONOMIES
Author(s) -
Szilágyi György
Publication year - 1966
Publication title -
review of income and wealth
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.024
H-Index - 57
eISSN - 1475-4991
pISSN - 0034-6586
DOI - 10.1111/j.1475-4991.1966.tb00718.x
Subject(s) - economics , macroeconomics
Within the framework of the CMEA, work is at present going on to compare the national income, and its components, of the planned economies of Eastern Eur0pe.l It is the purpose of this note to report on some of the methodological problems encountered. The chief aim of the study is to compare the national income of these countries. Starting from the expenditure side of the national income the comparison covers two basic aggregates: consumption (essentially private and government consumption expenditure, without non-material services), and accumulation (net capital formation and increase in stocks). Industrial and agricultural production, i.e., the two most important branches of production, are also compared, in some degree independently of the comparison of national income, but in essence by means of similar methods using several types of indicators. In many respects the task is similar to that performed by Milton Gilbert and his associates for the countries of Western Europe and the United state^.^ However, a comparison of countries with centrally planned economies raises problems which were not met in the study of the market economies. Furthermore, the CMEA study in many respects goes into more detail than did the Gilbert study. Hence, numerous new problems of a methodological character are met and have to be settled. Experts in statistics, in planning, and in economics of the countries concerned are cooperating with staff members of the CMEA secretariat in finding the solutions. The study is being carried out not only globally but also in detail. Thus the comparison covers about 15-20 items of consumption, the most important components of investment, the production of 16 branches of industry, and about 20 groups of agricultural products. The required degree of accuracy of the comparison is sought not only for the global volumes but also for their components. A number of problems arise in attempting to make international comparisons. These can be divided into three groups: