Hofer, Helmut; Runstler, Gerhard; Url, Thomas - In: Applied Economics Letters 7 (2000) 1, pp. 25-28
For the decomposition of GDP into its trend and cyclical components, Blanchard and Quah (1989) proposed to extract the cycle by imposing a long-run restriction on the moving average polynomial of a bivariate autoregressive process for GDP and a cyclical indicator. We investigate the robustness...