Comparative Computations Of Yugoslav National Income According To Material And Comprehensive Concepts Of Production

The author believes that the theoretical controversies relating to the two concepts of production have reached a dead end, and that the answer to these questions must be sought in the results of empirical research. It is to this end that he presents the results which he has arrived at in his computation of Yugoslav national income according to the Yugoslav methodology, which shares the material product concept, and the methodology of the United Nations, which is typical of the enlarged concept of production. In comparing the results of the computations according to the two methodologies, the author concludes that in spite of conceptual differences the deviation of the Yugoslav estimates from the values calculated following the system of the UN is relatively modest (4.2%) if domestic product at factor cost is used. The difference relative to aggregates calculated at market price rises to 13.6%. The author explains these differences by the fact that all the Yugoslav aggregates are computed at market prices, and that services financed by budgetary contributions, which amount to 80% of all services, have found their place in the market prices of material production. He finds that the choice of prices used for calculation has a greater weight for the computation of production than conceptual differences in the methodology of the computations.