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 ﬁlter. Write a com-puter code that implements the H-P ﬁltering (i.e., matrix I-A-1 ). 4. Read Cooley and Prescott’s 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...
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This note was uploaded on 09/06/2011 for the course ECO 476 taught by Professor Chang during the Fall '07 term at Rochester.
- Fall '07