Gross Value Added (GVA) is a measure in economics of the value of goods and services produced in an area, industry or sector of an economy. In national accounts GVA is output minus intermediate consumption^[1]; it is a balancing item of the national accounts' production account^[2].

Relationship to Gross Domestic Product[link]

GVA is linked as a measurement to Gross Domestic Product (GDP), as both are measures of output. The relationship is defined as:

GVA + taxes on products - subsidies on products = GDP

As the total aggregates of taxes on products and subsidies on products are only available at whole economy level,^[3] Gross Value Added is used for measuring Gross regional domestic product and other measures of the output of entities smaller than a whole economy.

See also[link]

• National accounts
• Measures of national income and output
• Gross domestic product
• Gross regional domestic product
• Value added
• Gross profit

References[link]

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In economics, the difference between the sale price and the production cost of a product is the value added per unit. Summing value added per unit over all units sold is total value added. Total value added is equivalent to Revenue less Outside Purchases (of materials and services). Value Added is a higher portion of Revenue for integrated companies, e.g., manufacturing companies, and a lower portion of Revenue for less integrated companies, e.g., retail companies. Total value added is very closely approximated by Total Labor Expense (including wages, salaries, and benefits) plus "Cash" Operating Profit (defined as Operating Profit plus Depreciation Expense, i.e., Operating Profit before Depreciation). The first component (Total Labor Expense) is a return to labor and the second component (Operating Profit before Depreciation) is a return to capital (including capital goods, land, and other property). In national accounts used in macroeconomics, it refers to the contribution of the factors of production, i.e., land, labour, and capital goods, to raising the value of a product and corresponds to the incomes received by the owners of these factors. The national value added is shared between capital and labor (as the factors of production), and this sharing gives rise to issues of distribution.

Outside of economics, value added refers to "extra" feature(s) of an item of interest (product, service, person etc.) that go beyond the standard expectations and provide something "more" while adding little or nothing to its cost.^{[citation needed]} Value-added features give competitive edges to companies with otherwise more expensive products.

National accounts[link]

The factors of production provide "services" which raise the unit price of a product (X) relative to the cost per unit of intermediate goods used up in the production of X.

In national accounts such as the United Nations System of National Accounts (UNSNA) or the United States National Income and Product Accounts (NIPA), gross value added is obtained by deducting intermediate consumption from gross output. Thus gross value added is equal to net output. Net value added is obtained by deducting consumption of fixed capital (or depreciation charges) from gross value added. Net value added therefore equals gross wages, pre-tax profits net of depreciation, and indirect taxes less subsidies.

Marxist interpretation[link]

Karl Marx's concept of the value product is similar to the national accounting concept of net national product, or net value added, since it is the value of the gross product minus expenditure on constant capital, where the latter refers to the costs of intermediate products and depreciation. In turn, value added is equal to the sum of variable capital (labor's compensation) and surplus-value (pre-tax profit income). The argument is that labor creates a new value (value added) that covers the cost of both its own wages (payment for workers' ability to do labor, i.e. for their labor power) and surplus-value (property income). In Marx's example in his Das Kapital, workers exert enough labor-time during a working day to pay for the cost of reproducing their ability to work during that day (their labor-power) and then did extra work (surplus-labor) to pay incomes to capitalists, land-owners, and the like. As labor is the active and conscious factor in the production process, capital goods ("means of production") and gifts from nature ("land," natural resources) only facilitate labor's transformation of raw materials into other products, raising labor's physical productivity (its ability to produce use-values) and its value-productivity (its ability to produce use-values that can be sold for money).

In contrast, Neoclassical economics regards the incomes constituting added value as the reward for services rendered. In his critique of political economy, Marx saw incomes as results of production under conditions of capitalist exploitation. The capitalist class control over the production process and the growth of the economy (capital accumulation) gives them the power to claim the benefits of the extra labor done by the workforce. This is enforced by the normal existence of mass unemployment, what Marx called the "reserve army of labor."

Differences between Marxist and neo-classical accounting of value added[link]

A difference between Marxist theory and conventional national accounts concerns the interpretation of the distinction between new value created, transfers of value and conserved value, and of the definition of "production".

For example, Marxist theory regards the "imputed rental value of owner-occupied housing" which is included in GDP as a fictitious entry; if the housing is owner-occupied, this housing cannot also yield real income from its market-based rental value at the same time.

In the 1993 manual of the United Nations System of National Accounts (UNSNA), the concept of "imputed rental value of owner occupied housing" is explained as follows:

"6.89. Heads of household who own the dwellings which the households occupy are formally treated as owners of unincorporated enterprises that produce housing services consumed by those same households. As well-organized markets for rented housing exist in most countries, the output of own-account housing services can be valued using the prices of the same kinds of services sold on the market in line with the general valuation rules adopted for goods or services produced on own account. In other words, the output of the housing services produced by owner-occupiers is valued at the estimated rental that a tenant would pay for the same accommodation, taking into account factors such as location, neighbourhood amenities, etc. as well as the size and quality of the dwelling itself. The same figure is recorded under household final consumption expenditures."

Marxist economists object to this accounting procedure on the ground that the monetary imputation made refers to a flow of income which does not exist, because most home owners do not rent out their homes if they are living in them.

Another important difference concerns the treatment of property rents, land rents and real estate rents. In the Marxian interpretation, many of these rents, insofar as they are paid out of the sales of current output of production, constitute part of the new value created and part of the real cost structure of production. They should therefore be included in the valuation of the net product. This contrasts with the conventional national accounting procedure, where many property rents are excluded from new value-added and net product on the ground that they do not reflect a productive contribution.

Value added tax[link]

Value added tax (VAT) is a tax on sales. It works by being charged on the sale price of new goods and services, whether purchased by intermediate or final consumers. However, intermediate consumers may reclaim VAT paid on their inputs, so that the net VAT is based on the value added by producing this good or service.

See also[link]

• Added value
• Gross output
• Gross value added
• Intermediate consumption
• Economic value added
• National accounts
• Measures of national income and output‎#The output approach
• Productive and unproductive labour
• Unproductive labour in economic theory
• Surplus-value
• United Nations System of National Accounts (UNSNA)
• Value (marketing)
• Value-added theory
• Value-added reseller
• Value product

References[link]

• Alan Deardorff Deardorff's Glossary of International Economics (Click V for "Value added.")

• Edgar Z. Palmer, The meaning and measurement of the national income, and of other social accounting aggregates.
• Paul A. Samuelson and William D. Nordhaus (2004) Economics. "Glossary of Terms," Value added.
• Anwar Shaikh & Ahmet Ertugrul Tonak, Measuring the Wealth of Nations. CUP.
• M. Yanovsky, Anatomy of Social Accounting Systems.

External links[link]

• What Does Value Add Mean?
• Value Add - Your Value Add is what Matters to Your Company
• Information and best practices of regional value added in the Alps

This article concerns the PIMCO bond manager; for the business-startup manager, see Bill Gross (entrepreneur)

Bill Gross
Born	(1944-04-13) April 13, 1944 (age 68) Middletown, Ohio
Nationality	American
Alma mater	UCLA (M.B.A.) Duke University
Known for	Co-founder of PIMCO
Net worth	$2.2 billion (2011)[1]

William Hunt "Bill" Gross (born April 13, 1944) is an American financial manager and investment author who co-founded Pacific Investment Management (PIMCO). Gross also runs PIMCO's $252.2 billion Total Return Fund.

Early life and career[link]

Gross was born in Middletown, Ohio, the son of Shirley, a homemaker, and Sewell M. Gross, a sales manager for AK Steel Holding.^[2][3] He was raised a Presbyterian.^[4] His family moved to San Francisco in 1954.^[3] Gross graduated from Duke University in 1966 with a degree in psychology.^[5] At Duke he joined Phi Kappa Psi.^[6] He then served in the Navy and earned an MBA from the UCLA Anderson School of Management in 1971. Gross briefly played blackjack professionally in Las Vegas, Nevada, and has said that he applies many of his gambling methods for spreading risk and calculating odds to his investment decisions. He is also a CFA Charterholder, earning his credentials while working as an investment analyst for Pacific Mutual Life between 1971 and 1976.^[7]

Gross manages one of the world's largest mutual funds, focusing mostly on bonds. Called "the nation's most prominent bond investor" by the New York Times,^[8] he co-founded Pacific Investment Management (PIMCO) and currently manages PIMCO's Total Return fund (the world's largest bond fund and fifth largest mutual fund) and several smaller ones.^[9]

In the 1990s he authored two popular-market books on investing, Bill Gross on Investing and Everything You've Heard About Investing is Wrong. In September 2008, by holding large positions in agency backed mortgage bonds of Fannie Mae and Freddie Mac, Gross's funds netted U.S. $1.7 billion after the Federal takeover of Fannie Mae and Freddie Mac^[10] for which he had lobbied^{[citation needed]}.

According to Forbes, in 2011, he is the 564th richest person in the world, with a net worth of $2.1 billion.^[11]

Personal life[link]

Gross is Married to Sue J. Gross. They have two children together.^[12]

Gross is also a prominent stamp collector.^[13] As of November 2005, he became the third person (after Robert Zoellner in the 1990s and Benjamin K Miller pre-1925)^[14] to form a complete collection of 19th century United States postage stamps. In October 2005, he purchased at auction for $2.97 million a unique plate block of the famous 1918 24-cent U.S. airmail stamps known as the "Inverted Jenny," featuring an engraving of a Curtiss JN-4 biplane printed upside-down. He then traded the Inverted Jenny Plateblock to Donald Sundman, President of Mystic Stamp Company, a stamp dealer, for a 1-cent 1868 "Z Grill" depicting Benjamin Franklin, thus completing Gross's 19th century collection.^[15]

In 2009, Gross bought a house on Harbor Island in Newport Beach, CA for $23 million and then tore it down.^[16]

In July 2011, Gross purchased the former home of actress Jennifer Aniston for a reported $42 million.

Philanthropy[link]

In 2005, Gross donated $23.5 million to Duke University, $20 million of which was set aside for financial aid.^[17]

In 2006, Gross donated to Médecins Sans Frontières the 9.1 million U.S. dollars^[18] that he earned from the auction at Shreves Philatelic Galleries of his British philatelic collections.^[19] His Scandinavian and Finnish collections were sold by Spink auction house in May 2008 to make a donation to the Millennium Villages Project.^[20]

Bibliography[link]

• Bill Gross (1997). Everything You've Heard About Investing Is Wrong!. Crown Business. ISBN 0-8129-2839-3. 
• Bill Gross (1998). Bill Gross on Investing. Wiley. ISBN 0-471-28325-8. 

References[link]

External links[link]

• Speech inducting Bill Gross into the Fixed Income Analysts Society Hall of Fame
• New York Times article on Gross's stamp collecting
• The Bill Gross' Way of Making Money (Market Thoughts)
• The William Gross Stamp Collection
• Gross auction at Shreves Philatelic Galleries
• Bill Gross interviewed by American business news journalist Consuelo Mack

Sven Nys

Personal information
Full name	Sven Nys
Nickname	▪ The Cannibal from Baal ▪ The General
Born	(1976-06-17) 17 June 1976 (age 35) Bonheiden, Belgium
Height	1.81 m (5 ft 11 in)
Weight	72 kg (11 st 5 lb)
Team information
Current team	Landbouwkrediet-Euphony
Discipline	Cyclo-cross Mountain bike racing Road
Role	Rider
Professional team(s)
1998–2008 2008–	Rabobank Landbouwkrediet-Tönissteiner
Major wins
UCI Cyclo-cross World Cup Overall standings (2000, 2002, 2005, 2007, 2008, 2009) 46 individual races Cyclo-cross Superprestige Overall standings (1999, 2000, 2002, 2003, 2005, 2006, 2007, 2008, 2009, 2011, 2012) 55 individual races GvA Trophy Overall standings (2003, 2005, 2006, 2007, 2008, 2009, 2010, 2011) 42 individual races Cyclo-cross World Champion (2005) National Cyclo-cross Champion (2000, 2003, 2005, 2006, 2008, 2009, 2010, 2012) National Mountainbike Champion (2005)
Medal record Competitor for  Belgium Cyclo-cross World Championships Gold Sankt Wendel 2005 Elite Men's Race Silver Sankt Wendel 2011 Elite Men's Race Bronze Sint-Michielsgestel 2000 Elite Men's Race Bronze Zolder 2002 Elite Men's Race Bronze Treviso 2008 Elite Men's Race Bronze Hoogerheide 2009 Elite Men's Race Bronze Tábor 2010 Elite Men's Race
Infobox last updated on 20 January 2012

Nys at Middelkerke in December 2007

Sven Nys (born 17 June 1976 in Bonheiden, near Antwerp, Belgium) is a professional cyclist who has won his most important victories in cyclo-cross races.

Nys began racing BMX at the age of 8. He won eight BMX National titles before switching his focus to cyclocross and road racing.

In 2005 he became the first cyclo-crosser to achieve the Grand Slam: he won both championships, ended as #1 at the UCI Rankings and won the Superprestige and the GvA Trophy.

In only his second race as a mountain bike racer he won the Belgian Championships and he ended ninth at the Olympic Games in 2008, ahead of the more experienced Belgian competitors.

On 31 December 2006, Nys scored his 150th career win at Superprestige #6 Diegem, Belgium – C1 and went on to win the first race of 2007, the race named after him, the Grand Prix Sven Nys. 4 years later, Nys scored his 300th career win at the Koppenbergcross, one of the toughest races in the season.

Nys is considered one of the greatest cyclo-cross racers ever by his peers and prominent figures of the cyclo-cross world; and the leading man in cyclo-cross in the 21st century.

Victories[link]

Results[link]

Championships[link]

World Cup[link]

NP: not participated

NH: not held

Superprestige[link]

Gazet van Antwerpen (GvA) Trophy[link]

References[link]

• Sven Nys profile at Cycling Archives

External links[link]

• Official web site (in Dutch)
• Video of Sven in Oostmalle

v t e UCI Cyclo-cross World Champions – Men's elite race 1950 Jean Robic 1951–1953 Roger Rondeaux 1954–1958 André Dufraisse 1959 Renato Longo 1960–1961 Rolf Wolfshohl 1962 Renato Longo 1963 Rolf Wolfshohl 1964–1965 Renato Longo 1966 Erik De Vlaeminck 1967 Renato Longo 1968–1973 Erik De Vlaeminck 1974 Albert Van Damme 1975 Roger De Vlaeminck 1976–1979 Albert Zweifel 1980 Roland Liboton 1981 Hennie Stamsnijder 1982–1984 Roland Liboton 1985 Klaus-Peter Thaler 1986 Albert Zweifel 1987 Klaus-Peter Thaler 1988 Pascal Richard 1989 Danny De Bie 1990 Henk Baars 1991 Radomír Šimůnek 1992 Mike Kluge 1993 Dominique Arnould 1994 Paul Herygers 1995 Dieter Runkel 1996 Adri van der Poel 1997 Daniele Pontoni 1998–1999 Mario De Clercq 2000 Richard Groenendaal 2001 Erwin Vervecken 2002 Mario De Clercq 2003–2004 Bart Wellens 2005 Sven Nys 2006–2007 Erwin Vervecken 2008 Lars Boom 2009 Niels Albert 2010–2011 Zdeněk Štybar 2012 Niels Albert