Statistical Evidence on the Acceleration Principle

Much attention has recently been given to the so-called " acceleration principle " or " the Relation " as Mr. Harrodl calls it. Developed by Professors Aftalion, Bickerdike, Bouniatian, Carver, Fanno, Kuznets and Pigou, it has been given special attention by Professor J. M. Clark in his splendid survey Strategic Factors in Business Cycles3 ; and has obtained a place in many theories of the business cycle. Professor Haberler,a from whom part of the above references are taken, also uses it in his own synthesis of theories ; Mr. Harrod regards the acceleration principle and the multiplier principle acting in combination as the chief forces in trade cycles. Quite recently Dr. Chait4 has developed a theory ikplying as special iases both the acceleration principfe and the multiplier principle.