Abstract
It is a long time since economists and statisticians have started working on the identification of the trend in output. Only recently, have the developments in both time series and business cycle studies shown that there is a close relation between the concept of trend in economic theory and its empirical counterpart. In economics, the trend captures the movement of the long run equilibrium value. Therefore it is the “permanent” component of output, i.e. the value to which the series converges, after short run fluctuactions.
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Fachin, S., Gavosto, A., Pellegrini, G. (1994). New Measures of the Permanent Component of Output: a Multi-Country Analysis. In: Baldassarri, M., Annunziato, P. (eds) Is the Economic Cycle Still Alive?. Central Issues in Contemporary Economic Theory and Policy. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-23183-6_4
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DOI: https://doi.org/10.1007/978-1-349-23183-6_4
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