Autonomous Investment
Autonomous investment is the baseline component of investment treated as independent of current income or output within a specified economic model.
Investment-demand concepts covering autonomous and induced investment, the accelerator model, inventory surprises, and circular-flow injections and leakages.
Investment demand depends on expected sales, productive capacity, financing cost, asset prices, taxes, uncertainty, and the time required to adjust capital. Autonomous Investment is independent of current output within a specified model; Induced Investment responds to changes in output, income, or expected demand.
The Investment Accelerator formalizes one demand channel by linking desired capital to expected output. Unplanned Inventory Investment instead records a sales surprise after production has occurred.
Injections and Leakages places investment inside the wider circular-flow identity alongside government spending, exports, saving, taxes, and imports.
These pages explain model relationships and national-account concepts. They do not predict a business cycle, interest-rate decision, company investment program, or security return.
Choose a subsection first. Deeper term pages live inside each subsection, which keeps large topic hubs readable.
Autonomous investment is the baseline component of investment treated as independent of current income or output within a specified economic model.
Induced investment is capital spending modeled as responding to changes in output, income, sales, or expected demand.
Injections and leakages are additions to and withdrawals from the circular flow of income through investment, government spending, exports, saving, taxes, and imports.
The investment accelerator is a model in which changes in expected output alter the desired capital stock and therefore investment spending.
Investment demand is desired spending on productive capital at different expected returns, financing costs, demand levels, and capacity conditions.
Unplanned inventory investment is the unexpected change in inventories caused when actual sales differ from the sales businesses anticipated when setting production.