Re: [Gretl-devel] Hodrick-Prescott parameter
On Fri, 14 Oct 2016, Riccardo (Jack) Lucchetti wrote:
On Fri, 14 Oct 2016, Artur T. wrote:
> That is the reason why I see no serious need to change the default
> value: It's already possible to set the lambda value as wished.
> Nevertheless, to add Ignacio's references to the manual would be a good
> idea though.
On this I don't agree: if a choice A turns out to be more preferable than B
for whatever reason, the default should be A. The only drawback in changing
is, as I said, breakage in backwards compatibility.
I agree with Jack: I don't think that updating our default parameter
values for the HP filter need imply that we endorse that filter. (And
I agree with Sven and Artur that there are persuasive argument against
using it.)
As regards compatibility, we have a choice here betweeb backward
compatibility and "sideways compatibility" -- that is, agreement with
other software. I guess my inclination is to make the changes that
Ignacio suggested but at the same time to add references to the
critiques of the HP filter to our documentation.
Allin