The purpose of this paper is to make an empirical investigation of de-trending techniques for the Czech Republic case in the process of business cycle modeling. Economy of this country belongs to the group of transition type, which usually disposes with limited sample size. This fact can significantly influence assumptions as well as results of de-trending methods in usage. For obtaining cyclical fluctuation, deterministic as well as stochastic methods are applied. According to the empirical results, two approaches of business cycle are discussed, classical and growth type. From the range of de-trending techniques standard types will be used, namely first order difference, linear filtering, unobserved component model and Hodrick-Prescott filter. In the case of Hodrick-Prescott filter, derivation of smoothing parameter especially for the Czech Republic case will be investigated. The aim is, on the basis of empirical analysis, to recommend suitable method for business cycle modeling in the Czech Republic. Available data are quarterly values of Gross Domestic Product (GDP) 1996/Q1 – 2008/Q3.

1. POSTER: Growth business cycle of the Czech Republic - empirical investigation of de-trending techniques, Microsoft Office Document, 0.2MB
2. FULLTEXT: Growth business cycle of the Czech Republic - empirical investigation of de-trending techniques, Microsoft Office Document, 0.1MB

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