Fig. 16
From: A neoclassical perspective on Switzerland’s 1990s stagnation
Robustness: The role of taxes for \(\nu =0.5\) (1987Q1–1999Q4). LW and \({\widetilde{LW}}\) denote the labour and tax-adjusted labour wedge, respectively. EW and \({\widetilde{EW}}\) are the Euler and tax-adjusted Euler wedge, respectively. Y and \(Y^{CF}\) denote output and the counterfactual path of output when holding labour taxes fixed