The economics and data whitening: Data visualisation

Abstract

The paper deals with principal component analysis and data whitening. The research is done in the area of main economic indicators. This means the data preprocessing problem. The main aim of this paper is to present and discuss the possible ways of data preprocessing. The paper deals with four main approaches. There are compared the results from raw data, absolute differences, relative differences and logarithmic differences. The classic principal component analysis is also used with some improvement, there is described the basement of data whitening. The main aim is to get the good data visualisation. The next aim of such approach can be to identify the similarities between some states and their main trends. For this reason there is presented the comparison of states of Visegrad Group. At this moment there is no aim to deeply discuss the reasons of development in detail. This paper suggests new point of view to time series connected to economic development. The deep analysis of all relationships is the topic for further research.