In page navigation


Updated: Aug 20, 2021

A connection between different parts of the economy. Spillovers may changes in one industry affect factor spillover to another: if a new factory bids on changes in one industry affect factor supplies to another: if a new factory bids up the wages of unskilled labour so that local people find cleaners or gardeners more expensive, this is a pecuniary spillover. Pecuniary spillovers produce their effects through markets. A non-pecuniary spillover occurs when one producer or consumer inflicts an externality on another: there is usually no market through which they can be paid not to do so. Non-pecuniary spillovers provide a prima facie case for government intervention, by regulation or taxation, whereas pecuniary spillovers do not, except on grounds of income distribution.

Reference: Oxford Press Dictonary of Economics, 5th edt.

Sources & references
Risk disclaimer

Invezz is a place where people can find reliable, unbiased information about finance, trading, and investing – but we do not offer financial advice and users should always carry out their own research. The assets covered on this website, including stocks, cryptocurrencies, and commodities can be highly volatile and new investors often lose money. Success in the financial markets is not guaranteed, and users should never invest more than they can afford to lose. You should consider your own personal circumstances and take the time to explore all your options before making any investment. Read our risk disclaimer >

James Knight
Editor of Education
James is a lead content editor for Invezz. He's an avid trader and golfer, who spends an inordinate amount of time watching Leicester City and the… read more.