On the Extrapolation with the Denton Proportional Benchmarking Method

Author/creator Marini, Marco Author
Other author Fonzo, Tommaso Di Author
Format Electronic
Publication InfoWashington : International Monetary Fund
Description24 p.
Supplemental ContentFull text available from Ebook Central - Academic Complete

Summary Annotation Statistical offices have often recourse to benchmarking methods for compiling quarterly national accounts (QNA). Benchmarking methods employ quarterly indicator series (i) to distribute annual, more reliable series of national accounts and (ii) to extrapolate the most recent quarters not yet covered by annual benchmarks. the Proportional First Differences (PFD) benchmarking method proposed by Denton (1971) is a widely used solution for distribution, but in extrapolation it may suffer when the movements in the indicator series do not match consistently the movements in the target annual benchmarks. for this reason, an enhanced formula for extrapolation was recommended by the IMF's Quarterly National Accounts Manual: Concepts, Data Sources, and Compilation (2001). We discuss the rationale behind this technique, and propose a matrix formulation of it. In addition, we present applications of the enhanced formula to artificial and real-life benchmarking examples showing how the extrapolations for the most recent quarters can be improved.
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Technical detailsMode of access: World Wide Web
Genre/formElectronic books.
ISBN9781475591057
ISBN1475591055 (E-Book) Active Record
Stock number00013468

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