Journal of Monetary Economics volume 59, issue 4, P381-392 2012 DOI: 10.1016/j.jmoneco.2012.03.005 View full text
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Giuseppe Fiori

Abstract: a b s t r a c tAggregate investment in the US economy displays a hump-shaped pattern in response to shocks, and the autocorrelation of aggregate investment growth is positive for the first few quarters, turning negative for the later quarters. This paper shows that this feature of the data is the natural outcome of a two-sector consumption/investment model designed and calibrated to reproduce plant-level evidence on capital accumulation.