The practice of hiring items of equipment, rather than buying them outright. This enables firms to manage with less capital than they would need if all their equipment had to be bought. It also shifts to the owners the risk of obsolescence; this will be reflected in the rentals demanded. Leasing may give tax benefits where a new firm has no profits against which it can set tax allowances on any equipment it buys. It may also enable local authorities to avoid cash limits on their expenditure.

• PAYE
• pay freeze
• payments, balance of
• payment, side-
• payments in kind
• payments union
• pay-off matrix
• payroll
• payroll tax
• peace dividend
• peak
• peak-load pricing
• peg, adjustable
• pendulum arbitration
• penetration, import
• pension
• pensionable age
• pension fund
• pension rights
• pension scheme
• PEP
• per capita income
• per capita real GDP
• percentage change
• percentile