ABSTRACT
One of the most often cited models of a dynamic nature is the so-called accelerator model which was made famous by Samuel son (Review of Economic Statistics, 1939). In his famous paper, Samuel son constructed a very simple macroeconomic model involving the variables consumption, investment, and national income. In this paper Samuel son emphasized the dynamic properties of the model which were caused by the form of the investment equation. If investment is made proportional to the change in consumption or national income then it is possible that the time paths of the variables in the model will oscillate. Thus the accelerator principle looms as a possible explanation of the business cycle.
