---
entity_slug: neat_revenue
evaluator: null
evaluated_at: '2026-02-23T06:01:52.086227'
overall_score: 4.2
scores:
- name: definition_precision
  value: 4.0
  max_value: 5.0
  rationale: The definition is clear and precise, establishing neat revenue as the
    remainder after deducting capital maintenance costs from annual produce. The analogy
    to "neat rent" helps clarify the concept, though the term "free" could be slightly
    more precise.
- 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
    and their relationship to societal wealth. The definition accurately reflects
    Smith's original formulation.
- name: domain_placement
  value: 4.0
  max_value: 5.0
  rationale: '"Distribution" is appropriate since neat revenue concerns how society''s
    total output is allocated between capital maintenance and available consumption.
    However, it could also fit in a "Capital" or "Wealth" domain given its focus on
    what remains after capital expenses.'
- name: vsm_relevance
  value: 3.0
  max_value: 5.0
  rationale: This entity has moderate VSM relevance, potentially mapping to S3 (internal
    regulation) as it represents a key performance metric for societal resource allocation.
    However, it's more of an outcome measure than an active system component.
- name: explanatory_value
  value: 5.0
  max_value: 5.0
  rationale: This entity provides excellent explanatory value by distinguishing between
    gross output and actual available wealth, illuminating the crucial mechanism of
    how capital maintenance requirements affect societal prosperity. It reveals the
    structural relationship between production, capital, and consumable wealth.
---

# Evaluation: Neat Revenue

## definition_precision — 4.0 / 5.0

The definition is clear and precise, establishing neat revenue as the remainder after deducting capital maintenance costs from annual produce. The analogy to "neat rent" helps clarify the concept, though the term "free" could be slightly more precise.

## 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 and their relationship to societal wealth. The definition accurately reflects Smith's original formulation.

## domain_placement — 4.0 / 5.0

"Distribution" is appropriate since neat revenue concerns how society's total output is allocated between capital maintenance and available consumption. However, it could also fit in a "Capital" or "Wealth" domain given its focus on what remains after capital expenses.

## vsm_relevance — 3.0 / 5.0

This entity has moderate VSM relevance, potentially mapping to S3 (internal regulation) as it represents a key performance metric for societal resource allocation. However, it's more of an outcome measure than an active system component.

## explanatory_value — 5.0 / 5.0

This entity provides excellent explanatory value by distinguishing between gross output and actual available wealth, illuminating the crucial mechanism of how capital maintenance requirements affect societal prosperity. It reveals the structural relationship between production, capital, and consumable wealth.