Hello everyone,
I am trying to identify peaks and troughs in GDP series by following the BBQ algorithm. My sample consists of about 30 emerging economies and I am working with seasonally adjusted GDP series for the period 2000q1-2021q4. I am running the sbbq command (sbbq gdp, w(2) p(2) cycle(5)).
For 4 countries in my sample, the algorithm produced false turning points which resulted in positive recession growth (log difference between the peak and trough). I am wondering whether there is a fix for this?
Many thanks in advance,
Irina
I am trying to identify peaks and troughs in GDP series by following the BBQ algorithm. My sample consists of about 30 emerging economies and I am working with seasonally adjusted GDP series for the period 2000q1-2021q4. I am running the sbbq command (sbbq gdp, w(2) p(2) cycle(5)).
For 4 countries in my sample, the algorithm produced false turning points which resulted in positive recession growth (log difference between the peak and trough). I am wondering whether there is a fix for this?
Many thanks in advance,
Irina
