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The interaction between the multiplier effect and the acceleration principle: An approximation for Colombia

Author

Listed:
  • José Reyes Bernal Bellón

    (PhD en Ciencias Económicas Universidad Nacional, profesor del programa de Maestría en Ciencias Económicas de la Universidad Santo Tomás. Carrera. 82 No. 77BB-27 Medellín-Colombia.)

  • Carlos Arturo Meza Carvajalino

    (Economista, Msc. en Ciencias Económicas y Msc. en Planificación y Administración del Desarrollo Regional. Estudiante de Doctorado en Agrociencias de la Universidad de La Salle. Docente de la Facultad de Ciencias Económicas y Sociales, Programa de Economía, de la Universidad de La Salle. Profesor en la Maestría de Ciencias Económicas de la Universidad Santo Tomás Carrera. 82 No. 77BB-27 Medellín-Colombia.)

Abstract

This paper describes the use of the multiplier and the acceleration principle in the theories of economic growth and income determination. Estimates are obtained for the two approaches to show their applicability and predictive power. The different estimates for Colombia suggest that their applicability is more robust in the prediction of the rate of economic growth than in models of income determination.

Suggested Citation

  • José Reyes Bernal Bellón & Carlos Arturo Meza Carvajalino, 2012. "The interaction between the multiplier effect and the acceleration principle: An approximation for Colombia," Economía, Instituto de Investigaciones Económicas y Sociales (IIES). Facultad de Ciencias Económicas y Sociales. Universidad de Los Andes. Mérida, Venezuela, vol. 37(34), pages 11-32, July-Dece.
    • Handle: RePEc:ula:econom:v:37:y:2012:i:34:p:11-32
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    References listed on IDEAS

    as
    1. Khaled Hussein & A. P. Thirlwall, 2000. "The Model of “New” Growth Theory Is the Harrod-Domar Growth Equation: Investment and Growth Revisited," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 22(3), pages 427-435, March.
    2. Richard Grabowski & Michael P. Shields, 2000. "A Dynamic, Keynesian Model of Development," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 25(1), pages 1-15, June.
    3. Dajin Li, 2002. "Is the AK model still alive? The long-run relation between growth and investment re-examined," Canadian Journal of Economics, Canadian Economics Association, vol. 35(1), pages 92-114, February.
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    More about this item

    Keywords

    economic growth; income; marginal propensity to consume; multiplier; accelerator.;
    All these keywords.

    JEL classification:

    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • O39 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Other
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries

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