A multivariate Denton method for benchmarking large data sets

Benchmarking is the process to achieve mathematical consistency between low-frequency (e.g. annual) and high-frequency (e.g. quarterly) data. Statistics Netherlands is going to apply a new benchmarking method on Dutch national accounts. The new benchmarking method is based on a multivariate Denton method, presented in Bikker and Buijtenhek (2006). In order to incorporate all economic relations into this model, we extended it with new methodological features, such as ratio constraints, soft constraints and inequality constraints. In this paper the new extended multivariate Denton method is presented.