Cumulative causation

Cumulative causation,

Definition of Cumulative causation:

  1. The economic principle that multiple changes are set in motion by a single event. The causation might be forward if the effects are positive, as in the case of the location of a new business generating more jobs, more investment opportunities, and a greater tax base for a community. The causation would be backward if a business closed, thereby creating the reverse effects of the opening of a new business. The chain reaction associated with cumulative causation is said to be created by the multiplier effect.

Meaning of Cumulative causation & Cumulative causation Definition