Two investment anomalies in aggregate home-production models are investigated: excess volatility and comovement. Adjustment cost in capital accumulation reduces both volatility and the negative correlation in investments on capital goods in the market and at home. Investments comove to the...

There are many anecdotes of people who quit their job after having their stock market wealth increase dramatically. This article assesses whether these anecdotes represent isolated incidents or whether the stock market has significantly affected U.S. labor supply