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The application of annual chain-linking to the Gross National Income system
This article shows the calculation of Gross National Income, Gross Domestic Income and Gross National Disposable Income for both the fixed base and the new annual chain-linking method.
Gross National Income (GNI) is important to UK National Accounts users because it measures the total income earned by a country’s residents and is useful for international comparisons. Annual chain-linking will be applied to the Gross National Income system with effect from September 2003. This article looks at the complexities encountered under the fixed base system and how the new method of annual chain-linking improves the consistency of calculations. It is important to note that the values shown in this article have been constructed to illustrate the calculations not to estimate the effect of annual chain-linking.
Further information of the calculations involved in the fixed base and annual chain-linking system are given in the paper Tuke and Reed (2001) The effects of annual chain-linking on the output measure of GDP. Economic Trends No. 575, pp. 37-53.
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