Published Paper Details:

The aim of this paper is to develop a modified version of the Samuelson (1939) Accelerator Model to study the Indian Economy in the post-liberalization period (1992-1993 to 2018-2019). The crisis which has emerged in the Indian economy has gained tremendous acceptance by now. Several papers have tried to investigate the major factors which are gradually leading to the propagation of this crisis. The objective of this research paper is to examine the macroeconomic variables responsible for this crisis. The theory of accelerator has been introduced owing to the fact that consumption has been a major contributor in keeping the economy afloat over the past decade since the GFC. Econometric analysis has been carried out to estimate the parameters of the model using the standard OLS technique and to examine if the interactions between consumption and investment can explain the time path of GDP for which the data has been collected from the Handbook of Statistics on the Indian Economy. The model seems to give robust results as I go on to conclude that the accelerator principle is highly relevant to our economy and therefore echoing that are the need of the hour is to boost consumption to put the grappling economy back on the growth trajectory.