Leakage is usually used in relation to a particular depiction of the flow of income within a system, referred to as the circular flow of income and expenditure, in the Keynesian model of economics. Within this depiction, leakages are the non-consumption uses of income, including saving, taxes,...
The former two can aid farmers to act on the policy-driven circular bioeconomy. Abstract Economic systems that rely on linear growth and non-renewable resources have enhanced environmental impact of agricultural practices at a global scale. The literature portrays an urgent need to align agricultural...
A least-developed country (LDC) is a nation recognized by the United Nations as having the lowest indicators of socioeconomic development, characterized by low income, weak human assets, and economic vulnerability.
Figure 1 shows a break in the flow of saving as it passes into investment. From the accounting standpoint—where investment necessarily equals saving—there is no rationale for this. It has been done here to focus attention on the point in the circular flow that, in the income–expenditure ...
Saving, therefore, may be treated as a leakage from the circular flow. Investment, which consists of spending of capital by the business sector on new plant and equipment and on desired additions to inventories, is, in the same terminology, an injection into the circular flow. If, for ...