APPENDIX B - Notes to Tables Appearing in Chapter 5  pp. 313-326

Notes to Tables Appearing in Chapter 5

By John Piggott and John Whalley

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This appendix gives notes on the derivation of the data tables reported in Chapter 5. The notes are not meant to be comprehensive in reporting all the details involved but do aim to provide readers with the main sources used along with a brief outline of major adjustments.

Table 5.1

Summary Production and Demand Transactions, UK, 1973.

Definition of Terms

Profit Type Return: This includes the net of tax, gross of subsidy, and net of depreciation, returns on capital use. Major differences between the concept employed here and that used in the National Accounts include:

  • (i) the allocation of some self-employment income as a return to capital;
  • (ii) the subtraction of a portion of interest payments attributed to a charge for financial services;
  • (iii) the addition of hire and rental expenses;
  • (iv) the subtraction of corporation tax payments;
  • (v) the addition of capital type subsidy payments;
  • (vi) the subtraction of stock appreciation.

Labour Costs: These are the net of tax, gross of subsidy, returns to labour. Major differences between the concept employed here and that used in the National Accounts include:

  • (i) the allocation of some self-employment income as a return to labour;
  • (ii) the subtraction of National Insurance payments;
  • (iii) the addition of labour subsidies.

Net Capital Tax Payments: These estimates represent corporation tax payments and rates, less capital type subsidy payments.

Net Labour Tax Payments: These estimates represent National Insurance payments, less regional employment premiums.