Score contribution per author:
α: calibrated so average coauthorship-adjusted count equals average raw count
This paper illustrates measuring the U.K. business cycle (detrending) by extracting the component of aggregate output that has moments which most closely match those from business-cycle models. A member of a parametric family of detrending filters (which includes linear detrending and first differencing as special cases) is selected by the generalized method of moments. Illustrations use moments from (1) a fully calibrated, real business cycle model and (2) business-cycle indicators. Measured cycles are compared to those resulting from Hodrick-Prescott filtering and to the Central Statistical Office's reference cycle. Copyright 1996 by Royal Economic Society.