Advertisement

The Econometric Approach

  • Nicholas Rau
Chapter
Part of the Macmillan Studies in Economics book series

Abstract

The previous two chapters should not be regarded as a summary of a ‘theory’ of the cycle; a more apt description would be ‘an analysis of some logical constructions which at one time or another have been believed to provide an explanation of the trade cycle, but which on closer inspection probably do not’. Thus some writers still refer to ‘the multiplier-accelerator theory of the cycle’, but as a matter of simple mathematics, multiplier-accelerator interaction is neither necessary nor sufficient to give rise to oscillations and will not give rise to self-generating oscillations, without damping or explosion, except in a very particular case.

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

Copyright information

© Nicholas Rau 1974

Authors and Affiliations

  • Nicholas Rau
    • 1
  1. 1.University College LondonUK

Personalised recommendations