Using the Samuelson Model to Assess the French Economy's Business Cycle: A Mathematical Study

Abstract

The business cycle is considered one of the essential and replenishable topics. It represents one of the flaws of the capitalist economic system and several adjectives that give it this importance. Therefore, economists gave it the necessary attention. Perhaps the most well-known of them is Samuelson, credited with being one of the first economists to study and model the market cycle. It attempted to quantify and forecast the market cycle by integrating two concepts: the multiplier and the compressor. The tools of this model were applied in our research on the French economy over the period (1985-2018). The study could determine the business cycles that it has gone through in a precise and objective way, totaling five business cycles (for the studied period), including the start and end dates (except the last cycle, which has not ended yet).