Recurrence quantification index across real and simulated data

What is it about?

Trade cycles are complex phenomena which oscillate because of economic downturns and expansions. Recurrence quantification analysis (RQA) detects state changes without necessitating any a priori mathematical assumption and highlights hidden features of the dynamics both at equilibrium and near transition phases. This paper aims to understand some potential application of recurrence quantification analysis in detecting recessions

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Why is it important?

Because 1) It provides a synthetic measure of recurrence quantification analysis (RQA) i.e. the recurrence correlation index 2) It validates the recurrence correlation index on sample data 3) It shows similarity between simulations and real data