Business and Marketing: Macro econometrics

Business and Marketing
Student's Name
Institutional Affiliation
Date
Macro econometrics
The article by James Hamilton depicts the varying ways in which economic models are created to portray a suitable environment for persons. We might need to relate the model to noticed non-fixed information without standing firm on where the non-stationarity comes from. As such, Hodrick and Prescott (1981, 1997) proposed a strategy for doing this, which is broadly utilized in economic research and strategy examination. Their technique has some genuine disadvantages. Luckily, there is a superior methodology that aid individuals avoid some of those challenges.
I think the points being made in the article,” Why You Should Never use the Hodrick Prescott Filter, “by James Hamilton portrays the various ways in which The Hodrick-Prescott (HP) filter is perhaps the most broadly utilized econometric techniques in the applied macroeconomic examination. The points are made in such a way that there is a depiction of various nonparametric methods used; thus, it tries to elaborate more on a period arrangement into a pattern and a repetitive part independent by monetary hypothesis of earlier pattern determination....