Benchmarking for short-term economic statistics. Richard McKenzie & David Brackfield OECD. Definition.
Richard McKenzie & David Brackfield OECD
In this example a monthly OECD MEI Production Index (industry excluding construction) will be benchmarked against the equivalent annual Gross Domestic Product in industry index for the same country. The result is a benchmarked monthly IIP estimate.
The next step is to decide on a univariate method. All possible combinations can be tried (simultaneously if wanted).
Possible methods are:
AR (1) MIN SSR or AR (1) MAX LOG
Issues for discussion:
Possible area of future work if countries want to trial benchmarking and present results next year?
OECD could coordinate this work and provide comparative analysis of lessons learnt.