We take a descriptive look at interrelated factor demand starting from the observation that adjustment of capital and labor is lumpy. We find that the adjustment dynamics of an input factor are affected by large adjustments in the other.
Letterie, W. A., Pfann, G. A., & Polder, J. M. (2004). Factor Adjustment Spikes and Interrelation: an empirical Investigation. Economics Letters, 85, 145-150. https://doi.org/10.1016/j.econlet.2004.03.017