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.
- Ando, A., and F. Modigliani. 1965. The relative stability of monetary velocity and the investment multiplier. American Economic Review 55(4): 693–728.Google Scholar
- De Prano, M., and T. Mayer. 1965. Tests of the relative importance of autonomous expenditure and money. American Economic Review 55(4): 729–752.Google Scholar
- Friedman, M. and Meiselman, D. 1963. The relative stability of monetary velocity and the investment multiplier in the United States, 1897–1958. In Commission on money and credit, stabilization policies, ed. E. Carey Brown et al., 165–268. Englewood Cliffs: Prentice-Hall.Google Scholar