Seasonality in Economic Models
University of Aarhus, Economics Working Paper No. 2001-16
42 Pages Posted: 18 Dec 2001
Date Written: December 12, 2001
Seasonality has been a major research area in economics for several decades. The paper asses the recent development in the literature on the treatment of seasonality in economics, and divides it into three interrelated groups. The first group, the Pure Noise Model, consists of methods based on the view that seasonality is noise contaminating the data or more correctly contaminating the information of interest for the economists. The second group, the Time Series Models, treats seasonality as a more integrated part of the modeling strategy, with the choice of model being data driven. The third group, Economic Models of Seasonality, introduces economic theory, i.e. optimizing behavior into the modeling of seasonality.
Keywords: Seasonality, Economic Modeling
JEL Classification: C19, C29, C59
Suggested Citation: Suggested Citation