Term:
Income – SNA
Definition:
Income, as it is generally understood in economics, is theoretically defined as the maximum amount that a household, or other unit, can consume without reducing its real net worth. Disposable income in the System of National Accounts is equivalent to the economic theoretic concept only when the net worth at the beginning of the period is not changed by capital transfers, other changes in the volume of assets or real holding gains or losses.
Domain:
Economics & National Accounts
Source:
SNA [8.15]