[OPE-L] Imputed interest (Re: Quantifying Values: response to Alan)

Iwao Kitamura (ikita@ST.RIM.OR.JP)
Thu, 22 Jan 1998 00:42:49 +0900 (JST)

I made a mistake in the last post of mine.
I forgot the newest SNA(1993) recommendation. (How many countries
already adopt this version? not Japan, at least)
The newest version of SNA(1993) turned back the treatment of inputed
interest similar to the old 1953 SNA. They allocate inputed interest to
lenders and depositors, thus a part of it is counted as intermediate input and
the rest as final demand that equals to value added.

I said I agree with Juriaan that total amount of inputed interest has to be
counted as value. This doesn't mean the official estimation of inputed interest
exactly fit to our concept. The estimation of interest and dividend income
can't avoid including capital gains and losses. When trust fund or investment fund
pay out dividend, this amount including capital gains and losses is counted as
dividend income in SNA. Moreover, interest payments of credit to financial
transactions often include represented capital gains.

What do you think?