The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd

Net Product

  • Paolo Varri
Reference work entry


The net product of a nation is the total amount of all commodities and services produced in that nation in a given period of time in excess of the commodities and services that have been required for its production. This definition coincides with the notion of wealth first introduced by Adam Smith (1776). The main difference between the modern concept and the original one concerns wages that we now consider as part of the net product but were initially (and until Marx) included among the advances to be reproduced.

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  1. Ricardo, D. 1815. An essay on the influence of a low price of corn on the profits of stock. In The works and correspondence of David Ricardo, vol. IV, ed. P. Sraffa. Cambridge: Cambridge University Press, 1951.Google Scholar
  2. Smith, A. 1776. An inquiry into the nature and causes of the wealth of nations. Oxford: Clarendon Press, 1976.CrossRefGoogle Scholar
  3. Sraffa, P. 1960. Production of commodities by means of commodities: Prelude to a critique of economic theory. Cambridge: Cambridge University Press.Google Scholar

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© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  • Paolo Varri
    • 1
  1. 1.