Permanent vs transitory components and e
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Anthony Garratt; Donald Robertson; Stephen Wright
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Article
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2006
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John Wiley and Sons
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English
β 244 KB
## Abstract Any nonβstationary series can be decomposed into permanent (or βtrendβ) and transitory (or βcycleβ) components. Typically some atheoretic preβfiltering procedure is applied to extract the permanent component. This paper argues that analysis of the fundamental underlying stationary econo