ABSTRACT
Chapter 3 deliberates various approaches to national accounting. National accounts measure the economic activity of nations, but are susceptible to the underlying assumptions and the definition of the production boundary. In this chapter, first, the international guidelines for national accounts are deliberated, followed by a presentation of various index constructionsand historical national accounts. Next follows a discussion on welfare indicators, satellite accounts that encompasses unpaid domestic services, human capital formation and natural degradation, and accounts based on Classical economics. The chapter ends with an examination of the paradoxes of national accounting.
