Budget independent of any external to it factors is autonomous budget. Accumulated money in the budget is used for expenditure, and the expenditure accumulates money in the budget, so the budget is left only on itself for its perpetuation. The size and structure of consumption prepares the conditions for income generation, for the budget is formed by the means of productive consumption. Simultaneously, the expenditure is grounded in the budget, because just what is already in the budget can be used to cover the expenses. In contrast to any exogenous budget, the autonomous budget is in accordance only with itself: expenditure creates income and income – expenditure.
Historical Backdrop
• FRANK KNIGHT Risk, Uncertainty, and Profit: management and risk.
• DANIEL ELLSBERG Risk, Ambiguity, and the Savage Axioms: measurable uncertainty.
• JOHN MAYNARD KEYNES The General Theory of Employment, Interest, and Money: autonomous investments.
• ALVIN HANSEN Economic Policy and Full Employment: autonomous factors.
• MILTON FRIEDMAN A Theory of Consumption Function: consumption function under complete certainty.