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Journal of Applied Mathematics
Volume 2012 (2012), Article ID 917247, 17 pages
http://dx.doi.org/10.1155/2012/917247
Research Article

Using Wavelets to Understand the Relationship between Mortgages and Gross Domestic Product in Spain

Department of Applied Economics, University of La Laguna (ULL), Campus de Guajara s/n, 38071 La Laguna, Spain

Received 11 May 2012; Accepted 18 October 2012

Academic Editor: Alvaro Valencia

Copyright © 2012 C. González-Concepción et al. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

Abstract

We use wavelet multiresolution decomposition and cross-wavelet analysis to reveal certain properties in financial data related to mortgages to households and gross domestic product data in Spain. Wavelet techniques possess many desirable properties, some of which are useful as a vehicle for analysing economic and financial data. In our case, wavelets are useful for drawing conclusions both in the time and frequency domains and for obtaining information on the different phases through which the study variables progress.