Kitagawa, Akiomi; Shibata, Akihisa - In: Economic Theory 25 (2005) 3, pp. 751-762
A simple overlapping generations model with investment gestation lags is constructed. The model shows that, if the technology is of the AK type with capital-deepening externalities, the existence of investment gestation lags always generates permanent cyclical fluctuations in the economic growth...