A Spectral Analysis of Business Cycle Patterns in UK Sectoral Output

First published: 2010

Brief summary

Applies spectral (periodogram) analysis and band-pass filtering methodology to UK sectoral output data to identify the dominant periodicities of business cycle fluctuations across different economic sectors.

Article

A Spectral Analysis of Business Cycle Patterns in UK Sectoral Output is a preprint published by arXiv in 2010. It applies spectral (periodogram) analysis and band-pass filtering methodology to UK sectoral output data to identify the dominant periodicities of business cycle fluctuations across different economic sectors.

Methodology paper applying periodogram and band-pass filter techniques (Baxter & King) to detect business-cycle frequency components in UK sectoral output data. This gives the cycle claim a specific numerical and evidential setting rather than presenting periodicity only as a visual impression.

The article reports the following result: Business cycle fluctuations in sectoral output are analysed using spectral (periodogram) methods and band-pass filtering approaches, following established techniques for approximating cyclical components in economic time series. The interpretation is strongest when trend, volatility, structural breaks, data-snooping and out-of-sample performance are addressed.

For cycles researchers, the article brings together business cycle analysis, uk sectoral output, periodogram, band-pass filtering. It is relevant to financial-cycle research because multiple periodicities can overlap with trend, volatility, structural breaks and changing investor behaviour.

Because it is a preprint, the work should be read alongside later peer-reviewed publications and independent replications. It remains useful because the proposed cycle, dataset and analytical approach are stated clearly enough to be scrutinised.

Source details and credits

• Source / publisher: arXiv
• Source type: Preprint
• URL type: PDF
• Credits: arXiv
• URL: https://arxiv.org/pdf/1001.4762