This preview shows page 1. Sign up to view the full content.
Unformatted text preview: labor income shares are more or less constant over time. 3. Write down the F.O.C.s for the Hodrick-Prescott lter. Write a com-puter code that implements the H-P ltering (i.e., matrix I-A-1 ). 4. Read Cooley and Prescotts Chapter 1 of Frontiers of Business Cycle Research. Using the post-war quarterly data for U.S. reproduce Table 1.1. (Be mindful about how you treat the seasonality in time series.) Report any anomalies from the stylized facts of business cycles. Do this question using each of the following trends. H-P trend. Linear trend. Three-year moving average with equal weights. 1...
View Full Document
- Fall '07