An Intuitive Guide to Wavelets for Economists

Bank of Finland Research Discussion Paper No. 1/2005

71 Pages Posted: 30 Aug 2005

See all articles by Patrick M. Crowley

Patrick M. Crowley

Texas A&M University - Corpus Christi; Bank of Finland/Suomen Pankki

Date Written: January 2005


Wavelet analysis, although used extensively in disciplines such as signal processing, engineering, medical sciences, physics and astronomy, has not yet fully entered the economics discipline. In this discussion paper, wavelet analysis is introduced in an intuitive manner, and the existing economics and finance literature that utilizes wavelets is explored. Extensive examples of exploratory wavelet analysis are given, many using Canadian, US and Finnish industrial production data. Finally, potential future applications for wavelet analysis in economics are also discussed and explored.

Keywords: Statistical methodology, multiresolution analysis, wavelets, business

JEL Classification: C19, C65, C87, E32

Suggested Citation

Crowley, Patrick M., An Intuitive Guide to Wavelets for Economists (January 2005). Bank of Finland Research Discussion Paper No. 1/2005, Available at SSRN: or

Patrick M. Crowley (Contact Author)

Texas A&M University - Corpus Christi ( email )

6300 Ocean Drive, Unit #5808
Corpus Christi, TX 78412
United States


Bank of Finland/Suomen Pankki ( email )

P.O. Box 160
FIN-00101 Helsinki

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