Table 7: Contribution of the wedges to aggregate uctuations in Canada

|Wedges/Moments|_σ_(_y_<sup>_o_</sup>)_/σ_(_y_)|_ρ_(_y_<sup>_o_</sup>_, y_)|_σ_(_m_<sup>_o_</sup>_/y_<sup>_o_</sup>)|_σ_(_c_<sup>_o_</sup>)_/σ_(_y_<sup>_o_</sup>)|_σ_(_x_<sup>_o_</sup>)_/σ_(_y_<sup>_o_</sup>)|_ρ_(_m_<sup>_o_</sup>_/y_<sup>_o_</sup>_, y_<sup>_o_</sup>)|
|---|---|---|---|---|---|---|
|Data|_−_|_−_|0_._91 (_._10)|0_._85 (_._08)|4_._60 (_._23)|_−_0_._05 (_._24)|
|A. Economies with|just one wedge||||||
|Eciency|1_._09 (_._23)|0_._61 (_._06)|1_._23 (_._11)|0_._64 (_._07)|0_._86 (_._07)|0_._93 (_._02)|
|Labor|0_._99 (_._16)|0_._32 (_._25)|0_._87 (_._10)|0_._78 (_._07)|1_._12 (_._05)|0_._77 (_._02)|
|Investment|0_._16 (_._01)|0_._11 (_._13)|1_._29 (_._17)|4_._53 (_._50)|22_._8 (1_._6)|_−_0_._17 (_._07)|
|Risk Prem.|0_._33 (_._07)|_−_0_._10 (_._22)|1_._01 (_._11)|1_._35 (_._20)|3_._70 (_._22)|0_._97 (_._00)|
|Government|0_._07 (_._01)|0_._59 (_._04)|0_._33 (_._02)|1_._08 (_._14)|3_._76 (_._50)|0_._14 (_._11)|
|B. Economies with|two active wedg|es|||||
|Ec., Labor|1_._07 (_._07)|0_._91 (_._04)|0_._88 (_._14)|0_._68 (_._06)|1_._17 (_._07)|0_._87 (_._04)|
|Ec., Invest.|1_._11 (_._24)|0_._61 (_._06)|1_._86 (_._14)|1_._00 (_._15)|3_._71 (_._69)|0_._54 (_._13)|
|Ec., Risk Pr.|1_._09 (_._27)|0_._58 (_._09)|1_._14 (_._12)|0_._54 (_._06)|1_._10 (_._06)|0_._92 (_._01)|
|Labor, Invest.|0_._96 (_._15)|0_._35 (_._24)|0_._90 (_._05)|0_._89 (_._10)|4_._01 (_._60)|0_._12 (_._29)|
|Labor, Risk Pr.|0_._93 (_._16)|0_._31 (_._21)|1_._29 (_._09)|0_._90 (_._07)|1_._93 (_._17)|0_._62 (_._04)|
|Invest., Risk Pr.|0_._42 (_._07)|_−_0_._04 (_._21)|1_._81 (_._21)|1_._80 (_._15)|10_._0 (1_._3)|0_._52 (_._08)|
|C. Economies with|three active wed|ges|||||
|E., Lab., Inv.|1_._06 (_._05)|0_._94 (_._03)|0_._71 (_._04)|0_._89 (_._07)|3_._92 (_._18)|_−_0_._01 (_._15)|
|E., Lab., R. Pr.|0_._96 (_._02)|0_._98 (_._00)|0_._86 (_._06)|0_._79 (_._04)|1_._69 (_._18)|0_._66 (_._07)|
|E., Inv., R. Pr.|1_._12 (_._27)|0_._57 (_._09)|1_._89 (_._20)|0_._82 (_._13)|3_._93 (_._85)|0_._51 (_._14)|
|Lab., Inv., R. Pr.|0_._92 (_._16)|0_._33 (_._19)|1_._50 (_._13)|1_._03 (_._10)|4_._71 (_._69)|0_._20 (_._22)|
|D. Economies with|four active wed|ges|||||
|All but Eciency|0_._93 (_._15)|0_._36 (_._19)|1_._54 (_._13)|1_._03 (_._05)|4_._74 (_._66)|0_._28 (_._20)|
|All but Labor|1_._16 (_._28)|0_._59 (_._09)|1_._80 (_._19)|0_._56 (_._08)|3_._94 (_._81)|0_._57 (_._13)|
|All but Investment|1_._00 (_._02)|0_._99 (_._00)|1_._10 (_._09)|0_._65 (_._06)|1_._56 (_._15)|0_._70 (_._07)|
|All but Risk Prem.|1_._08 (_._05)|0_._95 (_._02)|0_._56 (_._04)|0_._66 (_._03)|3_._94 (_._20)|0_._22 (_._09)|
|All but Government|0_._96 (_._01)|1_._00 (_._00)|0_._93 (_._10)|0_._98 (_._06)|4_._67 (_._25)|_−_0_._26 (_._24)|

This table reports the contribution of the wedges to aggregate uctuations in Canada. For consistency when comparing the models with the data, the counterfactual series were exponentially retrended using the average population and output growth rates, and then detrended using the Hodrick Prescott lter with a smoothing parameter of 1600. The statistic _σ_ ( _x_ ) measures the standard deviation of the series _x_ , while _ρ_ ( _x, y_ ) measures the correlation coecient between the series _x_ and _y_ . Counterfactual time series are denoted with a superscript _o_ . The variable _y_ denotes output; _m_ , net exports; and _c_ , private consumption. GMM-based standard errors are reported in parentheses.

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