---
entity_slug: gross_revenue
evaluator: null
evaluated_at: '2026-02-23T05:33:53.142691'
overall_score: 4.0
scores:
- name: definition_precision
  value: 4.0
  max_value: 5.0
  rationale: The definition clearly distinguishes gross revenue from net revenue by
    specifying it's the total annual produce before deducting capital maintenance
    expenses. The analogy to gross rent of a private estate provides additional conceptual
    clarity.
- name: source_grounding
  value: 5.0
  max_value: 5.0
  rationale: This concept is directly grounded in Smith's text from Book II, Chapter
    2, where he explicitly discusses the distinction between gross and neat revenue
    using the private estate analogy. The definition accurately reflects Smith's original
    formulation.
- name: domain_placement
  value: 4.0
  max_value: 5.0
  rationale: Placement in "Distribution" is appropriate since gross revenue relates
    to how the total produce is allocated between capital maintenance and available
    wealth for consumption. It could arguably fit in "Production" as well, but Distribution
    captures its role in the flow of economic value.
- name: vsm_relevance
  value: 3.0
  max_value: 5.0
  rationale: This entity has moderate VSM relevance, primarily mapping to S3 (internal
    regulation/audit) as it represents a key metric for understanding total system
    output before accounting for maintenance costs. It's less directly operational
    than S1-focused concepts but more concrete than pure S5 policy abstractions.
- name: explanatory_value
  value: 4.0
  max_value: 5.0
  rationale: The concept provides significant explanatory power by establishing the
    foundational distinction between total production and available wealth, which
    is crucial for understanding how societies must allocate resources between capital
    maintenance and consumption. This illuminates a key structural relationship in
    economic systems.
---

# Evaluation: Gross Revenue

## definition_precision — 4.0 / 5.0

The definition clearly distinguishes gross revenue from net revenue by specifying it's the total annual produce before deducting capital maintenance expenses. The analogy to gross rent of a private estate provides additional conceptual clarity.

## source_grounding — 5.0 / 5.0

This concept is directly grounded in Smith's text from Book II, Chapter 2, where he explicitly discusses the distinction between gross and neat revenue using the private estate analogy. The definition accurately reflects Smith's original formulation.

## domain_placement — 4.0 / 5.0

Placement in "Distribution" is appropriate since gross revenue relates to how the total produce is allocated between capital maintenance and available wealth for consumption. It could arguably fit in "Production" as well, but Distribution captures its role in the flow of economic value.

## vsm_relevance — 3.0 / 5.0

This entity has moderate VSM relevance, primarily mapping to S3 (internal regulation/audit) as it represents a key metric for understanding total system output before accounting for maintenance costs. It's less directly operational than S1-focused concepts but more concrete than pure S5 policy abstractions.

## explanatory_value — 4.0 / 5.0

The concept provides significant explanatory power by establishing the foundational distinction between total production and available wealth, which is crucial for understanding how societies must allocate resources between capital maintenance and consumption. This illuminates a key structural relationship in economic systems.
