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Extra resources for A History of National Accounting
It constitutes the theoretical base that states as a requisite the estimation of interdependent economic aggregates, and not just the traditional national income. The role of the state expands beyond its classical functions (general administration, defense, police, justice). Public income and expenditure which by then were growing at a rapid pace become essential elements for the determination of the level of economic activity. As a consequence, the dawn of national accounting is historically closely related to the crisis, to the Keynesian macroeconomics and to the expansion o f the role of the state; the latter being reinforced during and after the war by policies of reconstruction, growth and social protection.
From Estimates o f National Income to Construction o f Accounts fo r the Nation Box 2 cont d) III. Government Income and Expenditure 17. 1 18. Poor relief (15) 19. Total government expenditures 20. 1 21. 7 22. 0 23. 7 27. 0 IV. Capital Transactions Account 24. Domestic asset formation 25. Foreign lending 26. 4 28. Receipts on capital account V. External Account 29. Exports 31. b. 0 (b) Shipping services 32. Foreign lending 30. b. 33. 1 1 Note on sources o f this table. Most of the items are directly derivable from King’s Natural and Political Observations.
The case of Charles Davenant (1656-1714) can be considered the exception confirming the rule, since he is not a theoretician. He admires Petty and King and, in 1698, publishes large extracts of the latter’s work. King, probably out of modesty, did not publish his own research, which only became public in 1802. 2. The concept of productive activity However, for better or for worse, theoreticians intensively discussed national income and its definition. Although many notions will be clarified, Adam Smith’s (1723-1790) restricted conception of productive activity will impinge strongly upon the estimations for the next hundred years following the publication of The Wealth o f Nations (1776).