Net national income

In national income accounting, net national income NNI is net national product NNP minus indirect taxes. Net national income encompasses a income of households, businesses, in addition to the government. Net national income is defined as gross domestic product plus net receipts of wages, salaries in addition to property income from abroad, minus a depreciation of fixed capital assets dwellings, buildings, machinery, transport equipment and physical infrastructure through wear and tear and obsolescence.

It can be expressed as

where:

This formula uses the expenditure method of national income accounting.

When net national income is adjusted for natural resource depletion, this is the called Adjusted Net National Income, expressed as

Natural resources are non-critical natural capital such(a) as minerals. NNI* does not throw critical natural capital into account. Examples are air, water, land, etc.

For reference, capital K is dual-lane up into four categories: