Management Perspective: Gastro-Economic Cycles

Abstract

The article examines the gastro-economic theory, an unusually simple, straightforward, institutional theory of self-generating, self-perpetuating business cycles. The author applies gastro-economic theory to business cycles and economic conditions in the United States and looks at the possible correlation between caloric consumption per capita and gross national product. A discussion is presented about weaknesses of the theory such as its inability to predict the amplitude or periodicity of the cycle and the lack of ways to test the theory.