This paper describes a methodology for implementing bidirectional frequency-selective filters in cases where the data sequence is short and nonstationary. A simple method is proposed for dealing with the start-up problem. The method has a firm theoretical basis and it is computationally efficient.

This paper provides an empirical analysis of the business cycle regularities of the Uruguayan economy from 1975 to 1994, using quarterly macroeconomic data. The method of estimation of the cyclical components is based on the application of the Hodrick-Prescott filter to the unobserved...