Autonomous Consumption

The minimum level of consumption that would still exist even if a consumer had absolutely no income. This contrasts with discretionary consumption, which is used for non-essential items. When combined with discretionary income, a person's autonomous consumption determines his or her real income, or real wages.

Certain bills and expenses are deemed to be autonomous (or independent), such as electricity, food and rent, because these expenses cannot ever be entirely eliminated whether you have money or not. Even in the worst-case financial scenario, you would still need to eat and have a place to live. If a consumer's income were to disappear for a time, he or she would have to dip into savings or increase debt in order to pay these expenses, which is also known as being in a "dissaving mode".

Investment dictionary. . 2012.

Look at other dictionaries:

  • Autonomous consumption — is a term used to describe consumption expenditure that occurs when income levels are zero. Such consumption is considered autonomous of income only when expenditure on these consumables does not vary with changes in income. If income levels are… …   Wikipedia

  • Consumption function — In economics, the consumption function is a single mathematical function used to express consumer spending. It was developed by John Maynard Keynes and detailed most famously in his book The General Theory of Employment, Interest, and Money. The… …   Wikipedia

  • Consumption (economics) — Economics …   Wikipedia

  • Consumption Function — The consumption function is a mathematical formula laid out by famed economist John Maynard Keynes. The formula was designed to show the relationship between real disposable income and consumer spending, the latter variable being what Keynes… …   Investment dictionary

  • Autonomous building — An autonomous building is a building designed to be operated independently from infrastructural support services such as the electric power grid, municipal water systems, sewage treatment systems, storm drains, communication services, and in some …   Wikipedia

  • Induced consumption — is a term used to describe consumption expenditure by households on goods and services which varies with income. Such consumption is considered induced by income when expenditure on these consumables varies as income changes.For example,… …   Wikipedia

  • FINANCES, AUTONOMOUS JEWISH — Internal Taxation The public finances of the autonomous jewish community in the Middle Ages and early modern times were conditioned by the need to support communal institutions as well as to meet sudden and often huge demands for money in order… …   Encyclopedia of Judaism

  • График потребления — CONSUMPTION SCHEDULE График, отображающий зависимость между потребительскими расходами (см. Consumption expenditure) и уровнем национального дохода или чистого дохода (см. Disposable income). При низком уровне дохода, имеющегося в распоряжении… …   Словарь-справочник по экономике

  • Автономное потребление — AUTONOMOUS CONSUMPTION Часть потребительских расходов, которые не меняются при изменении дохода. В краткосрочном периоде потребительские расходы включают в себя производное потребление (см. Induced consumption), расходы на которое меняются в… …   Словарь-справочник по экономике

  • Автономное потребление — (AUTONOMOUS CONSUMPTION) потребительские расходы домашних хозяйств, которые не зависят от уровня национального дохода …   Современные деньги и банковское дело: глоссарий

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.