Suchergebnisse

This paper documents cyclical asymmetries in the aggregate investment activity of UK industrial and commercial companies. The ability of a model of aggregate activity based on heterogeneous actions under non‐convex adjustment at the individual level to account for this feature is then investigated. Aggregate activity is found to be consistent with non‐convex adjustment at the individual level. Asymmetric features of microeconomic adjustment technology do not appear crucial for understanding aggregate non‐linearities.