What is autonomous consumption?

Autonomous consumption refers to the portion of total consumption that does not depend on disposable income. This is the minimum amount a household will continue to consume, even if income disappears completely. In such cases, consumption is made possible by using savings or other buffers.

At the macroeconomic level, autonomous consumption represents the amount that is always consumed, regardless of the level of national income.

This concept plays an important role in economic analysis and helps provide insight into consumer behavior, independent of income.

Version:
27/9/24