Calculation formula:
DPI = total income PI- income tax+(transfer income) = personal consumption C+ personal savings S.
DPI is considered to be the most important determinant of consumer spending. Therefore, "per capita disposable income" is often used to measure the changes in a country's living standards.
Extended data:
The difference between per capita disposable income and per capita net income
1, different meanings: per capita disposable income refers to the average value of disposable personal income. Per capita net income refers to the average net income of people in a country or region. Net income refers to the total income of one year's labor MINUS all the expenses that generate these incomes.
2. Different functions: Per capita disposable income is often called average income. Net income per capita is income minus expenditure.
3. Different statistical scope: per capita disposable income is calculated by country or region. Net income is calculated within the family.
Baidu Encyclopedia-Per capita disposable income