ABSTRACT
As Mr. John R. Hicks has underlined, his study is part of a growing stream of concepts and speculation. Not only has investment in general been disjointed, which is the basis for Hicks's and other models, but investment has been disproportionate in various sectors of the economy. Fluctuations in Mr, Hicks's system reflect levels of total investment which are inappropriate to the long-run rate of increase of output, in a progressive economy. These inappropriate fluctuations in total investment result from the interplay of the multiplier and the accelerator, when their values are taken at certain levels. A considerable portion of the effort of economic theorists is being brought to bear on the relationship between short-run fluctuations in income, output, employment, and the rate of economic progress. A boom appears to have generally exhausted a line of development in one sector of the economy, as a leading outlet for investment, for a period longer than a single cycle.
