A comparison of new and established benchmarking methods
Benchmarking
Institution
Eurostat
Year
2015
Level
Advanced
Abstract
Benchmarking is a well established method used widely in official statistics to ensure consistency between time series of differing frequencies. For example, in the production of UK National Accounts a number of areas constrain quarterly time series to sum over the year to a related annual time series from a different source. This paper compares two well established benchmarking methods (Denton and Cholette-Dagum) to a novel wavelet based approach to benchmarking. Wavelet benchmarking can be useful for handling more complicated benchmarking problems due to the time and frequency localisation properties of wavelets. These different benchmarking methods are compared using both real ONS time series and simulated data through a range of quality measures relevant to both users and producers of official statistics.