<p>I need to extract cyclical component from time series, when doing seasonal adjustment I have the option to remove, apart from seasonal component, the irregular component. Then I'll apply HP to the resulting series, should I leave there or remove the irregular component?</p>

CC BY-SA 4.0
2021-06-20T16:34:22.277Z
I thought the irregular component was the noise left in the series after the trend, level and cyclical were removed ? Perhaps the terminology one of us is using is different ?
mark leeds
CC BY-SA 4.0
2021-06-23T02:09:45.320Z
Just an aside, http://blog.eviews.com/2017/07/hamiltons-why-you-should-never-use.html
Jamzy
<econometrics><business-cycles>
Is Hodrick-Prescott filter optimal with irregular component?
manifold
# Is Hodrick-Prescott filter optimal with irregular component?

(Asked by: username_0 on 2021-06-20)

I need to extract cyclical component from time series, when doing seasonal adjustment I have the option to remove, apart from seasonal component, the irregular component. Then I'll apply HP to the resulting series, should I leave there or remove the irregular component?

**Tags:** econometrics, business-cycles

> **Comments:**
> **username_1**: I thought the irregular component was the noise left in the series after the trend, level and cyclical were removed ? Perhaps the terminology one of us is using is different ?  
> **username_2**: Just an aside, http://blog.eviews.com/2017/07/hamiltons-why-you-should-never-use.html  

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## 0 answers

