Sala, Luca; Söderström, Ulf; Trigari, Antonella - 2011
economic inefficiency in recent U.S. data: the output gap: the gap between the actual and efficient levels of output -- and the … establish three results. (i ) The output gap and the labor wedge are closely related, suggesting that most inefficiencies in … output are due to the inefficient allocation of labor. (ii ) The estimates are sensitive to the structural interpretation of …