11.1 This section will introduce the function of this account, that is, to show the contribution of transactions between residents and nonresidents to the secondary redistribution of the income account in the 1993 SNA. (In BPM5, this account was labeled as “current transfers. ” Note the issue of terminology raised in Chapter 10 Primary Distribution of Income Account. “Current transfers ” is also used in the 1993 SNA terminology for the components of this account, but the title “secondary redistribution of income ” emphasizes transfers in their role in the process of income distribution). 11.2 The section will describe a broad definition of the flows covered in this account: (a) (b) in the context of the balance of payments, the links to other accounts in the balance of payments; and, in the context of the 1993 SNA, the links to the other sectors of the domestic economy. It will also note where transactions are imputed in cases of current transfers in kind. It will contrast the different economic roles and meaning of primary distribution of income with secondary distribution of income. It will note that current transfers affect disposable income and, hence, the current account balance, but capital transfers do not. 11.3 This chapter will include an illustrative presentation of the secondary distribution of income account
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