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Re: st: gaps in the Hodrick-Prescott filter


From   Christopher Baum <[email protected]>
To   "[email protected]" <[email protected]>
Subject   Re: st: gaps in the Hodrick-Prescott filter
Date   Sat, 30 Oct 2010 10:45:31 -0400

On Oct 30, 2010, at 2:33 AM, Elena wrote:

> I am using the Hodrick Prescott filter for a simple time series and I
> get an error message telling me that Hodrick Prescott does not work
> with gaps.
> 
> Can anyone help me understand what that means?

Many time series routines in Stata do not tolerate gaps, that is, periods with missing data between the first and last periods specified. This should only arise if a time period is missing from the sample entirely. For some reason it is being flagged if the variables being filtered are missing within the specified range. In any case, the process cannot be performed on an interrupted time series.

Kit

Kit Baum   |   Boston College Economics & DIW Berlin   |   http://ideas.repec.org/e/pba1.html
                              An Introduction to Stata Programming  |   http://www.stata-press.com/books/isp.html
   An Introduction to Modern Econometrics Using Stata  |   http://www.stata-press.com/books/imeus.html


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