Lumpy Investment, Sectoral Propagation, and Business Cycles

0.8

0.6

0 1000 2000 3000 4000 5000

Figure 3: A simulation path of GDP and investment. X axis shows quarters. Y axis is
scaled by the stationary level GDP.

18

1.05

0.95------------'------------'------------'------------'------------

2000 2020 2040 2060 2080 2100

2000 2020 2040 2060 2080 2100

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