... both contemporaneously and for several leads and lags. (Note thatthe government consumption wedge is the sum of government consumption and net exports, and that net exports are negatively correlated ... investment wedge 1/[1 + τxt(st)], and the government consumption wedgegt(st) are simply functions of this random variable. Hence, when the state stis known, so are the wedges.To evaluate the ... yetlet,andxet,whichwecall the efficiency wedge components of output, labor, and investment. We com-pare these components to output, labor, and investment in the data. Othercomponents are computed...