Lastly, there is the accelerator effect
of expanding growth.
 used TEA amounts ranging from 0.02 to 0.15% in their study, and when 0.1% was used, a strong accelerator effect
was observed due to the rapid hydration of C3A (false setting).
- Pakistan economy losing 2-3% GDP because of lack of power; increase in power increases GDP and has an accelerator effect
A pioneering work by Bernanke, Gertler, and Gilchrist (1999, hereafter BGG) considers credit contracts between FIs and borrowing entrepreneurs in the nonfinancial sector and shows that entrepreneurial net worth plays an important role in delivering a financial accelerator effect
. Endogenous developments in the net worth amplify the macroeconomic effect of exogenous shocks hitting the economy.
Chami and Cosimano find that the financial accelerator effect
also works in reverse in the case of a contractionary policy action.
''And it will have an accelerator effect
on the rebuilding of Iraq by forcing the fledgling state to set up the appropriate organs of justice,'' it said.
And yes, Baumol argues that innovation breeds innovation because innovation has an accelerator effect
on increasing productivity and extending the supply of limited resources.
According to him, while the Federal Government's budget represents less than 10% of aggregate yearly expenditures in the economy, it has a very significant accelerator effect
on the financial plans of other tiers of government, and even more importantly, the private sector, which he observed, mostly operates on a January-December financial year.
Perhaps contrary to conventional wisdom, it is not possible to identify a financial accelerator effect
in the data either by examining the forecasting power of credit aggregates or, more generally, by studying the lead/lag pattern between credit aggregates and output.
In this case, the estimated coefficient on the user cost of capital (or Q) will be "too small," leading to adjustment costs that are "too large." Such simultaneity increases apparent accelerator effects
, because positive shifts of the investment function raise both investment and output.
In the simulation, lower interest rates raise interest-rate sensitive demand components, which are further increased by higher employment and accelerator effects
on business investment (Table A1).