Hodrick-Prescott Filter

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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.
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References in periodicals archive ?
the Hodrick Prescott filter, STATEC 2002b), multivariate filtering in the context of unobserved component models (Durand, 2002 and Guarda, 2002) and system estimation (Guarda, 1999).