Spillover Effect
Get Spillover Effect essential facts below. View Videos or join the Spillover Effect discussion. Add Spillover Effect to your Like2do.com topic list for future reference or share this resource on social media.
Spillover Effect

In economics, spillover effects are economic events in one context that occur because of something else in a seemingly unrelated context. For example, externalities of economic activity are non-monetary effects upon non-participants. Odors from a rendering plant are negative spillover effects upon its neighbors; the beauty of a homeowner's flower garden is a positive spillover effect upon neighbors.

In the same way, the economic benefits of increased trade are the spillover effects anticipated in the formation of multilateral alliances of many of the regional nation states: e.g. SAARC (South Asian Association for Regional Cooperation), ASEAN (Association of South East Asian Nations).

In an economy in which some markets fail to clear, such failure can influence the demand or supply behavior of affected participants in other markets, causing their effective demand or effective supply to differ from their notional (unconstrained) demand or supply.

Another kind of spillover effects are those generated by information. For example, when more information about someone generates more information about people related to her, and that information helps to eliminate asymmetries in information, then the spillover effects are positive (this issue has been found constantly in the economics and finance literature, see for instance the case of local banking markets[1]).

See also


  1. ^ Garmaise, M. & G. Natividad (2016). "Spillovers in Local Banking Markets". The Review of Corporate Finance Studies. 5 (2): 139-165.

  This article uses material from the Wikipedia page available here. It is released under the Creative Commons Attribution-Share-Alike License 3.0.



Top US Cities

Like2do.com was developed using defaultLogic.com's knowledge management platform. It allows users to manage learning and research. Visit defaultLogic's other partner sites below:
PopFlock.com : Music Genres | Musicians | Musical Instruments | Music Industry