Abstract
Wavelets provide a flexible basis for representing a signal that can be regarded as a generalization of Fourier analysis to non-stationary processes, or as a filter bank that can represent complex functions that might include abrupt changes in functional form, or signals with time varying frequency and amplitude. Of greatest import for economic analysis is the orthogonal deconstruction of a signal into time scale components that allow economic relationships to be analysed time scale by time scale and then re-synthesized.
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Ramsey, J.B. (2018). Wavelets. In: The New Palgrave Dictionary of Economics. Palgrave Macmillan, London. https://doi.org/10.1057/978-1-349-95189-5_2428
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DOI: https://doi.org/10.1057/978-1-349-95189-5_2428
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