Hodrick–Prescott filter
= Hodrick–Prescott filter
{wiki=Hodrick–Prescott_filter}
The Hodrick-Prescott (HP) filter is a mathematical tool used in macroeconomics and time series analysis to decompose a time series into a trend component and a cyclical component. It is particularly useful for analyzing economic data, such as GDP or other macroeconomic indicators, to separate the long-term trend from short-term fluctuations.