BROWSE

Leakage

What is a 'Leakage'

Leakage is a situation in which capital, or income, exits an economy or system rather than remaining within it. In economics, leakage refers to outflow from a circular flow of income model. In a two-sector model exhibiting a circular flow, all individual income is sent back to employers when goods and services are purchased, and back to employees through wages and dividends, creating a system without leakage.

Explaining 'Leakage'

The exit of money from the economy through leakage results in a gap in supply and demand. Leakage occurs when income is taken out through taxes, savings and imports. In retail, leakage refers to consumers who spend money outside of the local market.

Sources of Leakage

Income can leak out of closed systems through a variety of events and mechanisms. Tourism can cause leakage through funds transitioning between those who live in a particular area and chosen tourist destinations. Additionally, tourism-based businesses who have facilities in one area, but hold their headquarters in another, may create leakage as funds are shifted to the headquarters location.

Compensation for Leakage

In Keynesian economics, governments may have to inject cash into the system if leakage causes a shortage of capital. This injection of funds can occur by increasing the level of exports to foreign nations as well as through borrowing funds from investors or foreign governments.

Information Leakage

In regards to information or data, leakage occurs when internal information that was intended to remain private or confidential in nature is released to the public. This can include the accidental or intentional disclosure of information, or the failure to secure the information allowing for incidental exposure.


Further Reading


The “Leaking” Effect in Transmission of China's Monetary Policy [J]
en.cnki.com.cn [[J]' href='https:/api.miniature.io/pdf?url=en.cnki.com.cn%2FArticle_en%2FCJFDTotal-JJYJ200308002.htm'>PDF]
… latest 5 years, and suggests that there appears a phenomenon of monetary “leakage” when “positive … the paper gives some countermeasures concerning how to hold in the “leaking”effect … Mechanism of Monetary Policy: Debate and Thoughts[J];Finance and Economics;2005-02 …

Policy update: Managing carbon leakagePolicy update: Managing carbon leakage
www.tandfonline.com [PDF]
… latest 5 years, and suggests that there appears a phenomenon of monetary “leakage” when “positive … the paper gives some countermeasures concerning how to hold in the “leaking”effect … Mechanism of Monetary Policy: Debate and Thoughts[J];Finance and Economics;2005-02 …

A border adjustment for the EU ETS: Reconciling WTO rules and capacity to tackle carbon leakageA border adjustment for the EU ETS: Reconciling WTO rules and capacity to tackle carbon leakage
www.tandfonline.com [PDF]
… latest 5 years, and suggests that there appears a phenomenon of monetary “leakage” when “positive … the paper gives some countermeasures concerning how to hold in the “leaking”effect … Mechanism of Monetary Policy: Debate and Thoughts[J];Finance and Economics;2005-02 …

Components of carbon leakage in the fuel market due to biofuel policiesComponents of carbon leakage in the fuel market due to biofuel policies
www.tandfonline.com [PDF]
… latest 5 years, and suggests that there appears a phenomenon of monetary “leakage” when “positive … the paper gives some countermeasures concerning how to hold in the “leaking”effect … Mechanism of Monetary Policy: Debate and Thoughts[J];Finance and Economics;2005-02 …

Economic analysis of leakage in the Bangkok water distribution systemEconomic analysis of leakage in the Bangkok water distribution system
ascelibrary.org [PDF]
… latest 5 years, and suggests that there appears a phenomenon of monetary “leakage” when “positive … the paper gives some countermeasures concerning how to hold in the “leaking”effect … Mechanism of Monetary Policy: Debate and Thoughts[J];Finance and Economics;2005-02 …

Information leakage and market efficiencyInformation leakage and market efficiency
academic.oup.com [PDF]
… latest 5 years, and suggests that there appears a phenomenon of monetary “leakage” when “positive … the paper gives some countermeasures concerning how to hold in the “leaking”effect … Mechanism of Monetary Policy: Debate and Thoughts[J];Finance and Economics;2005-02 …

Financial Leakage, Bank Discrimination and Trade CreditsFinancial Leakage, Bank Discrimination and Trade Credits
en.cnki.com.cn [PDF]
… latest 5 years, and suggests that there appears a phenomenon of monetary “leakage” when “positive … the paper gives some countermeasures concerning how to hold in the “leaking”effect … Mechanism of Monetary Policy: Debate and Thoughts[J];Finance and Economics;2005-02 …

Competitiveness and leakageCompetitiveness and leakage
ideas.repec.org [PDF]
… latest 5 years, and suggests that there appears a phenomenon of monetary “leakage” when “positive … the paper gives some countermeasures concerning how to hold in the “leaking”effect … Mechanism of Monetary Policy: Debate and Thoughts[J];Finance and Economics;2005-02 …

The Theory and Empirical Analysis of Special Transfer Payments Leakage <span style=[J]' src='/thumbnails/?img=http%3A%2F%2Fen.cnki.com.cn%2FArticle_en%2FCJFDTotal-CJYJ200712007.htm' />The Theory and Empirical Analysis of Special Transfer Payments Leakage [J]
en.cnki.com.cn [[J]' href='https:/api.miniature.io/pdf?url=en.cnki.com.cn%2FArticle_en%2FCJFDTotal-CJYJ200712007.htm'>PDF]
… latest 5 years, and suggests that there appears a phenomenon of monetary “leakage” when “positive … the paper gives some countermeasures concerning how to hold in the “leaking”effect … Mechanism of Monetary Policy: Debate and Thoughts[J];Finance and Economics;2005-02 …

Identifying carbon leakage sectors in the EU ETS and implications of resultsIdentifying carbon leakage sectors in the EU ETS and implications of results
www.tandfonline.com [PDF]
… latest 5 years, and suggests that there appears a phenomenon of monetary “leakage” when “positive … the paper gives some countermeasures concerning how to hold in the “leaking”effect … Mechanism of Monetary Policy: Debate and Thoughts[J];Finance and Economics;2005-02 …


Leave a Reply

Your email address will not be published. Required fields are marked *

Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man Modern Man