Detrend

Detrend

To remove the general drift, tendency, or bent of a set of statistical data as related to time. Often accomplished by regressing a variable or a time index and perhaps the square of the time index and capturing the residuals. A stochastic detrend would be to subtract a moving-average (say for five years) from the value of the variable.

Detrend

The removal of a trend from the consideration of several variables. A detrend may be necessary to discover a company's true financial health. For example, one may detrend increased sales around Christmas time to see a more accurate account of a company's sales in a given year.
References in periodicals archive ?
To avoid the spurious regression problem, we follow the procedure suggested by Wooldridge (2009) and first detrend the dependent variable and all of the continuous independent variables.
2); and, (ii) using a GAM (reported below) to detrend for climatic effects.
I first detrend all variables with their corresponding growth factors to render the model stationary.
Aforementioned studies often add a linear time trend to an AR(2) to detrend the data.
First, we filter the "raw" data to detrend and smooth the original series by Fourier's transformation.
That distinction, in turn, depended on how they detrend and how they weight the roughly 200 time-series variables.
Thus, in order to avoid problems of spurious regression, we decided to detrend the time series of unemployment rates before using it in the VAR estimations.
In each case, we express the town data relative to (two sets of) comparator data, detrend the resulting ratio, and then examine the temporal differences in the responses of the detrended ratios.
1992), we detrend the raw trading volume series, [RTV.
From here on, we detrend the relevant variables by the technical progress [Z.
The essence of his methodology is to detrend the original series with an allowance for a structural break and to conduct tests for unit roots in the detrended series.