Externality

(redirected from spillover)
Also found in: Dictionary, Thesaurus, Encyclopedia, Wikipedia.

Externality

The cost or benefits of a transaction to parties who do not directly participate in it. Externality can be either positive or negative. For example, a merger can lead to higher share prices and bonuses for employees, benefiting shareholders and employees at the two companies merging, This can create wealth and positively impact a community. On the other hand, the merger can drive a competitor out of business, which results in layoffs and reduced wealth, which can hurt a community. Externality is also called spillover or the neighborhood effect. See also: External benefit, External cost.
References in periodicals archive ?
In contrast to this positive evidence, Barrios, Gorg and Strobl (2003) argue that there is no evidence supporting the presence of export spillover from MNFs on Spanish firms located in the same sector of economic activity for the period 1990-1994.
Having their prefrontal cortex disrupted generated spillover onto their unrelated events that followed.
With these premises in mind we concentrate our empirical analysis on the spillover effects of FDI in manufacturing, as this is the sector that is responsible for the bulk of Western Balkan countries exports and through which FDI may be able to influence most their economic development.
Somewhat surprisingly, the two large state research universities (Indiana University in Monroe County and Purdue University in Tippecanoe County) did not produce high scores in their respective home counties but rather seemed to "heat up" the counties where their expected spillover effects would overlap.
Working Paper | Exporting and Foreign Direct Investment Spillovers (/publication/exporting-and-foreign-direct-investment-spillovers)
In this study, we argue that cross-regional institutional idiosyncrasies affect the occurrence and magnitude of FDI spillovers both through influencing foreign firms as spillover generators and local firms as spillover receivers.
Section II develops testable implications concerning the information spillover effects of corporate scandals.
97) Most scholars don't even bother to define what a spillover is, and it's hard to find a theoretically durable and intellectually satisfying definition anywhere in the literature.
That is, the recipient of the knowledge spillover is able to access the knowledge without completely paying for the value of the knowledge.
Going back to the work of noted British economist Arthur Pigou, economic experts have advocated subsidizing activities with positive spillovers and taxing those with negative spillovers.
Assigning patents and citations to these clusters, they capture the geographic extent of knowledge spillovers within them.