History
The tableau économique (Economic Table) of François Quesnay (1759), which lay the foundation of the Physiocrats economic theory, is credited as the "first precise formulation" of interdependent systems in economics and the origin of multiplier theory. In the tableau économique, one sees variables in one period (time t) feeding into variables in the next period (time t+1), and a constant rate of flow yields geometric series, which computes a multiplier.
The modern theory of the multiplier was developed in the 1930s, by Kahn, Keynes, Giblin, and others, following earlier work in the 1890s by the Australian economist Alfred De Lissa, the Danish economist Julius Wulff, and the German-American economist N. A. J. L. Johannsen.
Read more about this topic: Multiplier (economics)
Famous quotes containing the word history:
“Classes struggle, some classes triumph, others are eliminated. Such is history; such is the history of civilization for thousands of years.”
—Mao Zedong (1893–1976)
“What you don’t understand is that it is possible to be an atheist, it is possible not to know if God exists or why He should, and yet to believe that man does not live in a state of nature but in history, and that history as we know it now began with Christ, it was founded by Him on the Gospels.”
—Boris Pasternak (1890–1960)
“The one duty we owe to history is to rewrite it.”
—Oscar Wilde (1854–1900)