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- Title
LABOR-CONSUMPTION ACCOUNTING (LCA): SUGGESTION FOR A HOUSEHOLD-ORIENTED NATIONAL ACCOUNTING SYSTEM.
- Authors
Holub, H. W.; Reich, U. P.; Sonntag, P.
- Abstract
The article comments on labor-consumption accounting (LCA). If the activities of the private household sector are to be represented in an economically satisfactory alternative system, it follows that: such a system must be presented in the form of a cyclical system, and this cyclical system requires new sectors and flows specially designed with the private household sector in mind. This radical change in economic inquiry, from a market-oriented measurement of demand to a social profit-and-loss calculation for the private household sector, requires an equally radical alteration of the accounting scheme. By contrast to current system of national accounting (SNA), the economic process is seen in labor consumption accounting (LCA) as a labor-trading process, that is, LCA is directed towards the distribution of labor in the economy. In SNA, market prices and factor costs are used, which bring serious inconsistency into the calculations. LCA consistently uses production costs, that is, labor costs. The value of net product is thereby reduced to the value of labor employed, national income, measured in labor values, is equal to the total income received from labor, and all uses are described in proportion to this income. Social costs of production, which cannot be found in current SNA, are also shown and differentiated in LCA. The economic aspects of environmental problems are taken into consideration in LCA.
- Subjects
CONSUMPTION (Economics); ACCOUNTING; PRIVATE sector; NATIONAL income accounting; ECONOMICS; MARKET prices
- Publication
Quality & Quantity, 1981, Vol 15, Issue 2, p111
- ISSN
0033-5177
- Publication type
Article
- DOI
10.1007/BF00144256