<p>I'm guessing the author has split the series between a trend component and noise component, for example with the HP-filter, and studies the smooth trend component.</p>

CC BY-SA 3.0
2015-12-07T11:38:46.373Z
2015-12-07T11:38:46.373Z
John L.
<p>I'm reading a paper and at some point the author writes : </p>

<p>"We do this by decomposing monthly <strong>real crude oil prices</strong> and analyzing the
effect of the <strong>smooth part</strong> on the degree of the stock market instability."</p>

<p>What does he mean by "smooth part"? Is it the same meaning we have when dealing with integers?(factoring to prime numbers) Or is it something else? I don't understand what "the smooth part" means and how it is of any importance.</p>

<p>Sorry in advance if the question is too beginner.</p>

CC BY-SA 3.0
2015-12-06T15:36:30.373Z
Doesn't the rest of the paper makes it clear? (e.g. on p77 - "father" and "mother" wavelets)
410 gone
<financial-economics>
What does this phrase mean?
kasra5004
# What does this phrase mean?

(Asked by: username_0 on 2015-12-06)

I'm reading a paper and at some point the author writes :

"We do this by decomposing monthly **real crude oil prices** and analyzing the
effect of the **smooth part** on the degree of the stock market instability."

What does he mean by "smooth part"? Is it the same meaning we have when dealing with integers?(factoring to prime numbers) Or is it something else? I don't understand what "the smooth part" means and how it is of any importance.

Sorry in advance if the question is too beginner.

**Tags:** financial-economics

> **Comments:**
> **username_1**: Doesn't the rest of the paper makes it clear? (e.g. on p77 - "father" and "mother" wavelets)  

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## 1 answers

### Answer by username_2 on 2015-12-07. Score: 1

I'm guessing the author has split the series between a trend component and noise component, for example with the HP-filter, and studies the smooth trend component.


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