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The Stability of Business Capital Outlays

Robert Lindsay

The Review of Economics and Statistics 1958

r H ERE seems to be increasing acceptance of the notion that business outlays for fixed capital have gained a new stability. The focus on growth is now so widespread, according to this argument, that American management will press ahead in the very teeth of incipient recession, so long as there is no clear evidence pointing to a major economic collapse. Put in other language, this is an argument for giving the acceleration principle a much reduced role in the analysis of business cycles. One of the more prominent champions of this thesis has been Neil H. Jacoby, former member of the President's Council of Economic Advisers. He has put the matter as follows:

DOI
10.2307/1925026
Volume
40 (2)
Pages
159
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