Reconciliation

1. Abdul Hadi Asfarangga
GRDP Reconciliation app can be accessed on https://hadiasfarangga.shinyapps.io/RekonPDRB

2. ▪ Recon Menu is where we input the
parameters and the data inputs
▪ Number of regions (𝒓): number of cross-
sectional observations (regions) to be
reconciled
▪ Number of components (𝒔): number of
GRDP components to be reconciled,
excluding total. For example, if we
simultaneously reconcile HFCE,NFCE,
GFCE, and GFCF, then there are 4
components
▪ Constraint: the type of constraint to be
applied to the sum of sub-annual data. If the
sum of sub-annual data is required to be
equal to the annual data, then the type of
constraint is binding. Otherwise, it is
unbinding
▪ Number of years (𝒌): number of years to
be reconciled

3. ▪ Number of periods (𝒏): number of time
observations (periods) to be reconciled. For
example, if we want to reconcile 5 years of
quarterly GRDP, then the number of periods
is 20 (4*5 = 20)
▪ Start year: the first year of the time period
▪ Initial data input: the browse button for
uploading the initial GRDP data.The
structure of the initial data input will be
explained later
▪ Benchmark input: the browse button for
uploading the benchmark data.The
structure of the benchmark input will be
explained later
▪ Run recon: the button for executing the
reconciliation (automatic balancing)

4. ▪ The type of constraint determines the data
input structure. However, in this tutorial, we
will only cover structure of data input for
the binding constraint‡
▪ Dimension: the initial data is a matrix with
size of 𝑟 ∗ 𝑛 × 𝑠 + 1 where
▪ 𝑟 = 𝑛𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑟𝑒𝑔𝑖𝑜𝑛𝑠
▪ 𝑛 = 𝑛𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑝𝑒𝑟𝑖𝑜𝑑𝑠
▪ 𝑠 = 𝑛𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑐𝑜𝑚𝑝𝑜𝑛𝑒𝑛𝑡𝑠
▪ If we reconcile 5 years of quarterly GRDP
with 4 components for 33 regions, the
dimension of the initial data is
33 ∗ 20 × 4 + 1 = 660 × 5
▪ The initial data input should be stored in a
comma delimited (CSV) file where the first
row contains labels of GRDP components,
followed by the initial data
Other regions
Total
GRDP Component
⋮ ⋮ ⋮ ⋮ ⋮ ‡The data input structure for the unbinding constraint will be
covered in the future

5. ▪ Dimension: the benchmark data is a
matrix with size of 𝑛 + 𝑟 − 1 ∗ 𝑘 × 𝑠
where
▪ 𝑟 = 𝑛𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑟𝑒𝑔𝑖𝑜𝑛𝑠
▪ 𝑛 = 𝑛𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑝𝑒𝑟𝑖𝑜𝑑𝑠
▪ 𝑘 = 𝑛𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑦𝑒𝑎𝑟𝑠
▪ 𝑠 = 𝑛𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑐𝑜𝑚𝑝𝑜𝑛𝑒𝑛𝑡𝑠
▪ If we reconcile 5 years of quarterly GRDP
with 4 components for 33 regions, the
dimension of the benchmark data is
20 + 33 − 1 ∗ 5 × 4 = 180 × 4
▪ The benchmark data input should also be
stored in a comma delimited (CSV) file
where the first row contains labels of GRDP
components, followed by the benchmark
data
▪ An example of quarterly GRDP recon
worksheet containing the data input
structure can be found here
GRDP Component
⋮ ⋮ ⋮ ⋮
⋮ ⋮ ⋮ ⋮
Other periods
Other regions − 1

6. ▪ We want to reconcile 5 years of quarterly
GRDP with 4 components for 33 regions.
The starting year is 2018
▪ The initial data input can be downloaded
here, while the benchmark input can be
downloaded here
▪ There are 9 step in running the GRDP
reconciliation (automatic balancing) as
shown in the picture beside
33 4
5 20 2018
Click browse and upload the
initial data input (a CSV file)
Click browse and upload the
benchmark input (a CSV file)
1 2
3 4 5
6 7
8
Click Run Recon
Click Analysis of
Results
9

7. ▪ Analysis of Results Menu is where we check and
analyze the automatic balancing results
▪ D𝐨𝐰𝐧𝐥𝐨𝐚𝐝: the button for downloading the
reconciled GRDP data (level).There are 3 options
of the reconciliation method, which consist of
▪ PFD: Denton’s Proportional First Differences
▪ B2: Relative Squared Differences
▪ AFD: Denton’s Additive First Differences
▪ Level: the submenu for comparing between the
original GRDP and the reconciled ones at the
level data
▪ Ratio: the submenu for comparing between the
original GRDP and the reconciled ones at the ratio
measure. If ratio > 100, it means that the
reconciled figure is higher than the original GRDP,
vice versa
▪ Growth: the submenu for comparing between the
original GRDP and the reconciled ones at the
growth measure
▪ We also provide some summary statistics to
analyze the result comparison better

8. hadi.asfarangga@bps.go.id