Leakage

A situation in which capital, or income, exits an economy, or system, rather than remains within it. In economics, leakage refers to outflow from a circular flow of income model. In a two sector model, all individual income is sent back to employers when goods and services are purchased, and back to employees through wages and dividends. 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.

Leakage may also refer to the release of private information prior to it being released to the public.

The exit of money from the economy through leakage results in a gap between what is supplied and what is demanded. If consumers spend their income outside of their community or country, then businesses must look elsewhere to make up for the loss of funds. In Keynesian economics, governments may have to inject cash into the system if leakage causes a shortage of capital.


Investment dictionary. . 2012.

Look at other dictionaries:

  • Leakage — describes an unwanted loss, or leak, of something which escapes from its proper location. In everyday usage, leakage is the gradual escape of matter through a leak hole. [ [http://www.m w.com/dictionary/leaking Merriam Webster] ] In different… …   Wikipedia

  • Leakage — Leak age, n. [Cf. D. lekkage, for sense 1.] 1. A leaking; also, the quantity that enters or issues by leaking. [1913 Webster] 2. (Com.) An allowance of a certain rate per cent for the leaking of casks, or waste of liquors by leaking. [1913… …   The Collaborative International Dictionary of English

  • leakage — leakage. См. неполное блокирование. (Источник: «Англо русский толковый словарь генетических терминов». Арефьев В.А., Лисовенко Л.А., Москва: Изд во ВНИРО, 1995 г.) …   Молекулярная биология и генетика. Толковый словарь.

  • leakage — index decrement, outflow Burton s Legal Thesaurus. William C. Burton. 2006 …   Law dictionary

  • leakage — late 15c., from LEAK (Cf. leak) (v.) + AGE (Cf. age) …   Etymology dictionary

  • leakage —  Leakage  Утечка   Частичная или полная потеря полезного носителя, вещества, свойства, как, например потеря электрического тока, уходящего через изолятор или магнитного потока, который выходит за пределы полезной цепи магнитного потока …   Толковый англо-русский словарь по нанотехнологии. - М.

  • leakage — [lēk′ij] n. 1. an act or instance of leaking; leak 2. something that leaks in or out 3. the amount that leaks in or out …   English World dictionary

  • Leakage — Release of information to some persons before official public announcement. The New York Times Financial Glossary * * * leakage UK US /ˈliːkɪdʒ/ noun [C or U] ► a situation in which a liquid or gas escapes from an opening in a pipe or container,… …   Financial and business terms

  • leakage — Release of information selectively or not before official public announcement. Bloomberg Financial Dictionary * * * leakage UK US /ˈliːkɪdʒ/ noun [C or U] ► a situation in which a liquid or gas escapes from an opening in a pipe or container, or… …   Financial and business terms

  • leakage — [[t]li͟ːkɪʤ[/t]] leakages N VAR A leakage is an amount of liquid or gas that is escaping from a pipe or container by means of a crack, hole, or other fault. A leakage of kerosene has polluted water supplies... It should be possible to reduce… …   English dictionary

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.