Robert Hodrick

Postwar U.S. Business Cycles: An Empirical Investigation

Coauthor(s): Edward Prescott.

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Abstract:
We propose a procedure for representing a time series as the sum of a smoothly varying trend component and a cyclical component. We document the nature of the comovements of the cyclical components of a variety of macroeconomic time series. We find that these comovements are very different than the corresponding comovements of the slowly varying trend components.

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