Neglected Insights on National Accounting’s Development and Agenda: An Appraisal of Value Appropriation from the Critique of Political Economy

Abstract

The System of National Accounts (SNA) is the framework for measuring economic activity.However, scholars from critical perspectives have noticed the system’s limitations in capturingkey economic flows. This paper examines these limitations with a focus on value appropriationflows, such as rents. First, it surveys the theoretical approaches present in the SNA since itsinception. Second, it shows how the SNA’s definitions of production and prices entail an identitybetween value creation and appropriation, thereby hindering the possibility of including thoseflows in the system. Finally, building upon insights from the critique of political economy, thearticle proposes extended accounts within the SNA’s framework that incorporate mechanismsof surplus transfers between branches, enabling a more accurate representation of capitalistdynamics. The results contribute to ongoing debates on economic measurement and call for anextension of the SNA’s research agenda.