@techreport{NBERw12336,
 title = "Aggregate Implications of Lumpy Investment: New Evidence and a DSGE Model",
 author = "Ruediger Bachmann and Ricardo J. Caballero and Eduardo M.R.A. Engel",
 institution = "National Bureau of Economic Research",
 type = "Working Paper",
 series = "Working Paper Series",
 number = "12336",
 year = "2006",
 month = "June",
 URL = "http://www.nber.org/papers/w12336",
 abstract = {The sensitivity of U.S. aggregate investment to shocks is procyclical: the initial response increases by approximately 50% from the trough to the peak of the business cycle. This feature of the data follows naturally from a DSGE model with lumpy microeconomic capital adjustment. Beyond explaining this specific time variation, our model and evidence provide a counterexample to the claim that microeconomic investment lumpiness is inconsequential for macroeconomic analysis.},
}