This procedure is a variance stabilization technique implemented after
Cook & Peters (1997): for each series a linear model is fitted on the
logs of level and spread, where level is defined as the local mean
\(M_t = \left(R_t + R_{t-1}\right)/2\) with
ring widths R, and spread S is the local standard deviation defined as
\(S_t = \left|R_t - R_{t-1}\right|\). The
regression coefficient b from \(\log S = k + b \log M\) is then used for the power transform \(\star{R}_t =
R_t^{1-b}\).
The rescale
argument rescales the data to more closely follow the
convention in ARSTAN.