IDEAS home Printed from https://ideas.repec.org/p/imf/imfwpa/2012-169.html
   My bibliography  Save this paper

On the Extrapolation with the Denton Proportional Benchmarking Method

Author

Listed:
  • Mr. Marco Marini
  • Mr. Tommaso Di Fonzo

Abstract

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.

Suggested Citation

  • Mr. Marco Marini & Mr. Tommaso Di Fonzo, 2012. "On the Extrapolation with the Denton Proportional Benchmarking Method," IMF Working Papers 2012/169, International Monetary Fund.
  • Handle: RePEc:imf:imfwpa:2012/169
    as

    Download full text from publisher

    File URL: http://www.imf.org/external/pubs/cat/longres.aspx?sk=26027
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Mr. Marco Marini & Mr. Tommaso Di Fonzo, 2011. "A Newton's Method for Benchmarking Time Series According to a Growth Rates Preservation Principle," IMF Working Papers 2011/179, International Monetary Fund.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Wang,Dieter, 2021. "Natural Capital and Sovereign Bonds," Policy Research Working Paper Series 9606, The World Bank.
    2. Mr. Marco Marini & Mr. Robert Dippelsman & Mr. Michael Stanger, 2018. "New Estimates for Direction of Trade Statistics," IMF Working Papers 2018/016, International Monetary Fund.
    3. He, Xi & Lopez, Rigoberto A. & Liu, Yizao, 2015. "Substitution between Online and Offline Advertising: Evidence from the Carbonated Soft Drink Industry," Working Papers 37, University of Connecticut, Department of Agricultural and Resource Economics, Charles J. Zwick Center for Food and Resource Policy.
    4. Elva BOVA & João TOVAR JALLES & Christina KOLERUS, 2018. "Shifting the Beveridge curve: What affects labour market matching?," International Labour Review, International Labour Organization, vol. 157(2), pages 267-306, June.
    5. Sami Ben Naceur & Amr Hosny & Gregory Hadjian, 2019. "How to de-dollarize financial systems in the Caucasus and Central Asia?," Empirical Economics, Springer, vol. 56(6), pages 1979-1999, June.
    6. repec:eur:ejfejr:42 is not listed on IDEAS
    7. Raïmi Aboudou Essessinou & Guy Degla, 2020. "Using a Fast Elitist Non-Dominated Genetic Algorithm on Multiobjective Programming for Quarterly Disaggregation of the Gross Domestic Product," European Journal of Engineering and Formal Sciences Articles, European Center for Science Education and Research, vol. 4, January -.
    8. Jacco Daalmans, 2018. "On the sequential benchmarking of subannual series to annual totals," Statistica Neerlandica, Netherlands Society for Statistics and Operations Research, vol. 72(4), pages 406-420, November.
    9. Guilherme Klein Martins & Fernando Rugitsky, 2021. "The Long Expansion and the Profit Squeeze: Output and Profit Cycles in Brazil (1996–2016)," Review of Radical Political Economics, Union for Radical Political Economics, vol. 53(3), pages 373-397, September.
    10. Enrique M. Quilis, 2018. "Temporal disaggregation of economic time series: The view from the trenches," Statistica Neerlandica, Netherlands Society for Statistics and Operations Research, vol. 72(4), pages 447-470, November.
    11. Samya Beidas-Strom & Marco Lorusso, 2019. "Macroeconomic Effects of Reforms on Three Diverse Oil Exporters: Russia, Saudi Arabia, and the UK," IMF Working Papers 2019/214, International Monetary Fund.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. International Monetary Fund, 2013. "Algeria: Selected Issues Paper," IMF Staff Country Reports 2013/048, International Monetary Fund.

    More about this item

    Keywords

    WP; Bi ratio;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:imf:imfwpa:2012/169. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Akshay Modi (email available below). General contact details of provider: https://edirc.repec.org/data/imfffus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.