In page navigation

Autonomous consumption

Updated: Aug 20, 2021

That part of consumption which does not depend on current income.

Autonomous consumption

a > 0 because even those with no income need to consume to live, and can finance expenditure by running down assets or borrowing. The level of a is influenced by total assets held, expectations of future income or acquisitions of assets through legacies, and social conventions about minimal acceptable standards of living.

Reference: Oxford Press Dictonary of Economics, 5th edt.

Sources & references
Risk disclaimer

Invezz is a place where people can find reliable, unbiased information about finance, trading, and investing – but we do not offer financial advice and users should always carry out their own research. The assets covered on this website, including stocks, cryptocurrencies, and commodities can be highly volatile and new investors often lose money. Success in the financial markets is not guaranteed, and users should never invest more than they can afford to lose. You should consider your own personal circumstances and take the time to explore all your options before making any investment. Read our risk disclaimer >

James Knight
Editor of Education
James is a lead content editor for Invezz. He's an avid trader and golfer, who spends an inordinate amount of time watching Leicester City and the… read more.