Description Assignment As a point of departure download the series of industrial production for Norway. You can download the data as an excel-file from the webpage of Statistics Norway (SSB’s statistikkbank): http://ssb.no/statistikkbanken. Find table 07095 “Produksjonsindeks for industrien” (“Industrial production index”) by searching for this number (07095) in the upper right hand corner on the home page of the data bank. Now, specify i) “Produksjonsindeks. Sesongjustert” (Index of production. Seasonally Adjusted), ii) Industri (Manufacturing), and iii) the full available period from 1990M01 to 2018M07 (or 2018M08 if available). Part I – to be done after module 2 of the course Based on the seasonally adjusted series, estimate a log-linear trend-model (see lecture notes and/or 16.1 in Gootfries, 2013) where you utilize the sample (transformed to a log format, i.e. “natural logs”, often referred to as “LN”) from a)The full sample period 1990M01 – last available observation. b)1990M01 – 2004M12. c)2005M01 – last observation. In the case of each of the time windows, provide an estimate of monthly and annual growth in the trend. Illustrate the estimated trends graphically. Choose your preferred trend model (out of the alternatives above). Calculate the growth cycle from the two time series (i.e. for each data point, calculate the cycle as the gap between the estimated trend and the original observation). Construct a graph which illustrates the growth cycle for the whole sample. Where are the turning points in the growth cycle? Part II – to be done after module 3 of the course Utilize the HP filter to decompose the industrial production series into trend and cycle (use the complete series of your seasonally adjusted data and transform the data to log format before the filtering). Try different values for λ , and make a choice of the value you prefer. Provide a graphical illustration of the trend for the different values of λ . Compute the growth cycle from the two time series (i.e. for each data point, calculate the cycle as the gap between the estimated trend and the original observation).Given the preferred trend path, construct a graph which illustrates the growth cycle. Where are the turning points? (compare to part I).