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Non-Convexities, Asymmetries and Aggregate Investment Activity: Evidence for the UK

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  • Richard W P Holt

Abstract

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.

Suggested Citation

  • Richard W P Holt, 2000. "Non-Convexities, Asymmetries and Aggregate Investment Activity: Evidence for the UK," Edinburgh School of Economics Discussion Paper Series 57, Edinburgh School of Economics, University of Edinburgh, revised Dec 2000.
    • Handle: RePEc:edn:esedps:57
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    File URL: http://www.econ.ed.ac.uk/papers/id57_esedps.pdf
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    References listed on IDEAS

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