Private Product Remaining or PPR is a means of national income accounting similar to the more commonly encountered

GNP The gross national income (GNI), previously known as gross national product (GNP), is the total domestic and foreign output claimed by residents of a country, consisting of gross domestic product (GDP), plus factor incomes earned by foreign ...

. Since government is financed through taxation and any resulting output is not (usually) sold on the market, what value is ascribed to it is disputed (see

calculation problem The economic calculation problem (sometimes abbreviated ECP) is a criticism of using economic planning as a substitute for market-based allocation of the factors of production. It was first proposed by Ludwig von Mises in his 1920 article "Econ ...

), and it is counted in GNP.

Murray Rothbard Murray Newton Rothbard (; March 2, 1926 – January 7, 1995) was an American economist of the Austrian School, economic historian, political theorist, and activist. Rothbard was a central figure in the 20th-century American libertarian m ...

developed the GPP (Gross Private Product) and PPR measures. GPP is GNP minus income originating in government and government enterprises. PPR is GPP minus the higher of government expenditures and tax revenues plus interest received.

PPR = C + I - G + (X - M) \,

* C is the private consumption * I is the Investments * G is Government Spending * X is Exports * M is Imports For example, in an economy in which the private expenditures total $1,000 and government expenditures total $200, the GNP would be $1,200, GPP would be $1,000, and PPR would be $800.

References

External links

''GNP, PPR, and the Standard of Living''
by Robert Batemarco, from the journal ''Review of Austrian Economics'' Austrian School Macroeconomic aggregates {{macroeconomics-stub

See also

References

External links