<p><a href="https://courses.lumenlearning.com/boundless-economics/chapter/measuring-output-using-gdp/" rel="nofollow noreferrer">Income approach</a> will sum all gross profits, rents, interest, wages and indirect taxes minus subsidies across the economy. If you want to separate GDP by industry then for public administration you just sum all of the above for its category.</p>
<p><a href="https://www.forex.academy/what-is-gdp-from-public-administration-forex-fundamental-driver-all-about/" rel="nofollow noreferrer">Public administration</a> includes among other things:</p>
<blockquote>
<p>Services like transportation, maintaining law and order, road construction, police, jails, tax exemptions, medicare, social security,</p>
</blockquote>
<p>Some of the above won't generate profit but some can (for example public transportation). The same holds for interest, rents, wages and so on. For GDP in public administration you just sum gross incomes in this category.</p>

CC BY-SA 4.0
2021-05-27T20:16:22.590Z
2021-05-27T20:16:22.590Z
csilvia
<ol>
<li>How is Public Administration generally considered when looking at GDP Income Approach by industry?</li>
<li>Is remuneration of employees the main factor considered, since there is no Operating Surplus?</li>
</ol>
<p>I am trying to understand the key principles of such calculations, rather than detailed mathematics. Thanks.</p>

<gdp>
GDP Income Approach by industry: Public Administration calculation?
Shane
# GDP Income Approach by industry: Public Administration calculation?

(Asked by: username_0 on 2021-05-27)

1. How is Public Administration generally considered when looking at GDP Income Approach by industry?
2. Is remuneration of employees the main factor considered, since there is no Operating Surplus?

I am trying to understand the key principles of such calculations, rather than detailed mathematics. Thanks.

**Tags:** gdp

---

## 1 answers

### Answer by username_1 on 2021-05-27. Score: 0

[Income approach](https://courses.lumenlearning.com/boundless-economics/chapter/measuring-output-using-gdp/) will sum all gross profits, rents, interest, wages and indirect taxes minus subsidies across the economy. If you want to separate GDP by industry then for public administration you just sum all of the above for its category.

[Public administration](https://www.forex.academy/what-is-gdp-from-public-administration-forex-fundamental-driver-all-about/) includes among other things:

> Services like transportation, maintaining law and order, road construction, police, jails, tax exemptions, medicare, social security,

Some of the above won't generate profit but some can (for example public transportation). The same holds for interest, rents, wages and so on. For GDP in public administration you just sum gross incomes in this category.


---

