Friday, December 4, 2009

Trends and cycles of export to wealth?


Gourinchas and Rey (2007).

Is it reasonable to study the trend and cyclical component of a ratio to GDP component?
If meaningful, what is the optimal HP smoothing parameter that matches the frequency or any desirable property?
Interesting plot. Till when will this trend last?
Plot other countries and check the upper bound.
100% a reasonable guess? or 50%? I'll have to see.

No comments:

Post a Comment