Abstract
This paper presents a new method for detecting turning points in business cycles using the discrete wavelet transform. A methodology is proposed to select the ideal wavelet function and optimize the identification method. We illustrate the method by analyzing the 1957–2021 United States business cycle. We compare the effectiveness of wavelet functions with the classical detection technique usually employed for this type of analysis.
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Colther, C., Rojo, J.L. & Hornero, R. A Wavelet Method for Detecting Turning Points in the Business Cycle. J Bus Cycle Res 18, 171–187 (2022). https://doi.org/10.1007/s41549-022-00072-y
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DOI: https://doi.org/10.1007/s41549-022-00072-y