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The trend-cycle is the component that represents variations of low frequency in a time series, the high frequency fluctuations having been filtered out. This component can be viewed as those variations with a period longer than a chosen threshold (usually 1½ years is considered as the minimum length of the business cycle).

In practice, statistical agencies estimate the trend-cycle by estimating and removing the seasonal and irregular components from the original non-adjusted data.

Source Publication:
OECD, 2005, Data and Metadata Reporting and Presentation Handbook, OECD, Paris, Section 4: Guidelines for the reporting of different forms of data.

Statistical Theme: Methodological information (metadata)

Created on Monday, July 11, 2005