Hodrick-Prescott Filter

(redirected from Hodrick Prescott Filter)
Also found in: Wikipedia.

Hodrick-Prescott Filter

A mathematical technique used to smooth the non-linear data points in a time series. The HP filter helps analysts better determine trends. It is used most often to smooth out indices of macroeconomic data, such as the Help Wanted Index.
References in periodicals archive ?
0051 82:2-02:4 Table 2: GDP-Inflation: Output Gap Based on Hodrick Prescott Filter (HPy) Country BPi FPi [DELTA]q HPy NZ 0.