This paper documents asymmetries in the aggregate investment activity of UK industrial and commercial companies. It then investigates the ability of a model of aggregate activity based on heterogeneous actions under asymmetric and non-convex adjustment at the individual level to account for this...

This paper focusses on the reallocation of labour resources in a New Keynesian environment with labour market search and endogenous separations. We show that introduction of variation in hours per worker alters the incentives for intertemporal substitution in a way that generates a more steeply...