Hodrick-Prescott filter

Publication date: 6 Feb 2020 | Publication type: National Institute Economic Review | External authors: Crafts, N, Mills, T C | JEL classification: C22, N13, N14, O47 | Journal: National Institute Economic Review Issue 251 | Publisher: Cambridge University Press
We estimate trend UK labour productivity growth using a Hodrick-Prescott filter method. We use the results to compare downturns where the economy fell below its pre-existing trend. We find that the current productivity slowdown has resulted in productivity being 19.7 per cent below the pre-2008...