Chari, Varadarajan V.; Kehoe, Patrick J.; McGrattan, … - 2004 - Rev
fluctuations in output, employment, and investment accounted for by these wedges during the Great Depression and the 1982 recession …>efficiency, labor, and investment wedges,</I> and then feed their measured values back into the model. We assess the fraction of …. For the Depression, the efficiency and labor wedges together account for essentially all of the fluctuations; investment …