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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