The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd

Income–Expenditure Analysis

  • Michael Artis
Reference work entry


The term ‘income–expenditure analysis’ serves as a short-hand expression for the dominant type of conceptual framework for macroeconomic analysis to emerge from the debate which crystallized around Keynes’s General Theory (Keynes 1936). As Coddington (1976) notes, income-expenditure analysis was not the only thing to be learned from the General Theory, but it has certainly been the dominant one, forming the central message of Keynesian economics as generally understood. Although the term does not appear to have been used by Keynes himself it is to be found, freely used, in the early works of exposition of the General Theory and the Keynesian Revolution. At the formal and simplest level it can be taken to refer to the 45° ‘Keynesian Cross’ diagram, at a more sophisticated level to the IS/LM analysis.

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  1. Barro, R., and H.I. Grossman. 1976. Money, employment and inflation. London/New York: Cambridge University Press.CrossRefGoogle Scholar
  2. Coddington, A. 1976. Keynesian economics: The search for first principles? Journal of Economic Literature, December. Reprinted in A. Coddington, Keynesian economics: The search for first principles. London: George Allen & Unwin, 1983.Google Scholar
  3. Keynes, J. M. 1936. The general theory of employment, interest and money. Reprinted in The collected writings of John Maynard Keynes, vol. VII. London: Macmillan, 1971.Google Scholar

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© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  • Michael Artis
    • 1
  1. 1.