Definition: Canonical decomposition

Category: Seasonal adjustment

Canonical decomposition maximises the variance of the irregular component, which also maximises the smoothness of the seasonal and trend‐cycle component so that no additive white noise can be removed from them. http://ec.europa.eu/eurostat/ramon/statmanuals/files/UNECE_Seasonal_Adjustment_Demetra.pdf
Source:
United Nations Economic Commission for Europe (UNECE), "Practical Guide to Seasonal Adjustment With Demetra+", Geneva, 2012
Created:
Updated: