Private Product Remaining
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Private Product Remaining or PPR is a means of national income accounting similar to the more commonly encountered GNP that provides a more accurate assessment. Since government is financed through taxation and any resulting output is not (usually) sold on the market, there's no way to place a meaningful value on it (see Socialist calculation problem), and yet it is counted in GNP. Murray Rothbard developed the GPP (Gross Private Product) and PPR measures to compensate. 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.
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External links
- GNP, PPR, and the Standard of Living by Robert Batemarco, from the journal Review of Austrian Economics