Abstract
Abstract Chapter 2 aims to convince the reader that economic time series show marked seasonality and an obvious trend, and, foremost, that the patterns of these trends and seasonal fluctuations do not seem to be very stable over time, nor do they seem to be similar across time series. We illustrate this for a range of quarterly US industrial production series, but other quarterly series from other countries would have yielded the same qualitative conclusion, as a glance at the relevant literature will indicate. We use graphical techniques and recently developed tests for seasonal unit roots. When economic data show evidence of unit roots, then one can conclude that the trend or the seasonal patterns are of a stochastic nature. This observation provides motivation for considering periodic models for economic data with a stochastic trend.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
