Hodrick-Prescott Filter

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Hodrick-Prescott Filter

A mathematical technique used to smooth the non-linear data points in a time series. The HP filter helps analysts better determine trends. It is used most often to smooth out indices of macroeconomic data, such as the Help Wanted Index.
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References in periodicals archive ?
the Hodrick Prescott filter, STATEC 2002b), multivariate filtering in the context of unobserved component models (Durand, 2002 and Guarda, 2002) and system estimation (Guarda, 1999).
Output gaps, unemployment gaps, and the Phillips curve
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