Policy-related small.area estimation
Nicholas Tibor Longford
No 2011-44, LISER Working Paper Series from Luxembourg Institute of Socio-Economic Research (LISER)
Abstract:
A method of small-area estimation with a utility function is developed. The utility characterises a policy planned to be implemented in each area, based on the area’s estimate of a key quantity. It is shown that the commonly applied empirical Bayes and composite estimators are inefficient for a wide range of utility functions. Adaptations for limited budget to implement the policy are explored. An argument is presented for a closer integration of estimation and (regional) policy making.
Keywords: Composition; empirical Bayes; expected loss; borrowing strenght; exploiting similarity; small-area estimation; utility function (search for similar items in EconPapers)
JEL-codes: C13 C14 C18 C44 C83 (search for similar items in EconPapers)
Pages: 36 pages
Date: 2011-07
New Economics Papers: this item is included in nep-ecm and nep-upt
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Persistent link: https://EconPapers.repec.org/RePEc:irs:cepswp:2011-44
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