Definition of Exogenous Expenditure

Exogenous Expenditure

See autonomous expenditure.

Autonomous Expenditure

Elements of spending that do not vary systematically with variables such as GDP that are explained by the theory. See also exogenous expenditure.

Aggregate Expenditure Curve

Aggregate demand for goods and services drawn as a function of the level of national income.

Capital expenditures

Amount used during a particular period to acquire or improve long-term assets such as
property, plant or equipment.

capital expenditures

Refers to investments by a business in long-term
operating assets, including land and buildings, heavy machinery and
equipment, vehicles, tools, and other economic resources used in the
operations of a business. The term capital is used to emphasize that
these are relatively large amounts and that a business has to raise capital
for these expenditures from debt and equity sources.

Capitalized Cost An expenditure or accrual that is reported as an asset to be amortized against

future-period revenue.

Capitalized Expenditures

expenditures that are accounted for as assets to be amortized
against income in future periods as opposed to current-period expenses.

Exogenous

An adjective indicating that something is determined by forces unrelated to the theory determining the variables under investigation.

Exogenous variable

A variable whose value is determined outside the model in which it is used. Also called
a parameter.

Expenditure

A payment or the incurrence of a liability by an entity.

Planned capital expenditure program

Capital expenditure program as outlined in the corporate financial plan.

Replacement Capital Expenditures

Capital expenditures required to replace productive
capacity consumed during a reporting period.

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