Samuelson introduced the multiplier-accelerator model of business cycles, and many studies followed to provide improved version (Samuelson, 1939; Puu et al., 2005; Westerhoff, 2006).
and Westerhoff, F (2006) 'Expectations and the Multiplier-Accelerator Model', In Puu, T.
(2005) 'A Hicksian Multiplier-Accelerator Model with Floor Determined by Capital Stock', Journal of Economic Behavior & Organization, 56, pp.
Following the paper of Karpetis and Varelas (2005), a discrete Keynesian type multiplier-accelerator model is developed that describes a closed economy in which cycles are generated solely by the demand side of the economy as a result of prices' rigidity.
The stability condition (16.1) is identical to the one specified in the context of Samuelson's (1939) multiplier-accelerator model. In addition to this stability condition, the integration of monetary sector in Samuelson's model resulted in the specification [Karpetis and Varelas (2005), p.
Years ago this issue was addressed, with perhaps the most comprehensive theoretical analysis being Paul Samuelson's multiplier-accelerator model
. Since then, that approach has not received a great deal of attention.