The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd

Autonomous Expenditures

  • M. Sawyer
Reference work entry


The idea of autonomous expenditures is usually associated with a simple Keynesian model of the economy and refers to those expenditures which are treated as exogenously given within the context of the model being used. The contrast is drawn between autonomous expenditures and induced expenditures. Autonomous expenditures are those which are unrelated to the other economic variables being considered, though it is income which is generally taken to be the key economic variable which does not influence autonomous expenditures. Induced expenditures are influenced by other economic variables, with the level of income being a major influence.

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© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  • M. Sawyer
    • 1
  1. 1.