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Non‐Convexities, Asymmetries and Aggregate Investment Activity: Evidence for the UK
Author(s) -
Holt Richard W. P.
Publication year - 2000
Publication title -
the manchester school
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.361
H-Index - 42
eISSN - 1467-9957
pISSN - 1463-6786
DOI - 10.1111/1467-9957.68.s1.4
Subject(s) - aggregate (composite) , economics , investment (military) , microeconomics , feature (linguistics) , econometrics , monetary economics , politics , materials science , political science , law , composite material , linguistics , philosophy
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.