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Detrend
(redirected from Detrends)

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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.


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First, he sets up the usual decomposition of output growth into its supply-side components, detrends each piece of the decomposition, and estimates a dynamic error correction model for each.
Since the first approach in effect imposes the assumption that the estimated means of the government purchases ratio in the two subsamples are the true population means, while the second detrends the government purchases ratio without such an assumption, the specification employed here renders the government purchases ratio stationary by including a dummy variable for the period beginning in 1970:3 on the righthand side of the equation.
11) It is important to note that, whenever one detrends the data, the behavior of the cyclical component at the very beginning and end of the sample is somewhat sensitive to the initial and terminal data points.
 
 
 
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