EconPapers    
Economics at your fingertips  
 

Small-Area Estimation with Zero-Inflated Data – a Simulation Study

Krieg Sabine (), Boonstra Harm Jan () and Smeets Marc ()
Additional contact information
Krieg Sabine: Statistics Netherlands, Postbus 4481, 6401CZ Heerlen, Netherlands
Boonstra Harm Jan: Statistics Netherlands, Postbus 4481, 6401CZ Heerlen, Netherlands
Smeets Marc: Statistics Netherlands, Postbus 4481, 6401CZ Heerlen, Netherlands

Journal of Official Statistics, 2016, vol. 32, issue 4, 963-986

Abstract: Many target variables in official statistics follow a semicontinuous distribution with a mixture of zeros and continuously distributed positive values. Such variables are called zero inflated. When reliable estimates for subpopulations with small sample sizes are required, model-based small-area estimators can be used, which improve the accuracy of the estimates by borrowing information from other subpopulations. In this article, three small-area estimators are investigated. The first estimator is the EBLUP, which can be considered the most common small-area estimator and is based on a linear mixed model that assumes normal distributions. Therefore, the EBLUP is model misspecified in the case of zero-inflated variables. The other two small-area estimators are based on a model that takes zero inflation explicitly into account. Both the Bayesian and the frequentist approach are considered. These small-area estimators are compared with each other and with design-based estimation in a simulation study with zero-inflated target variables. Both a simulation with artificial data and a simulation with real data from the Dutch Household Budget Survey are carried out. It is found that the small-area estimators improve the accuracy compared to the design-based estimator. The amount of improvement strongly depends on the properties of the population and the subpopulations of interest.

Keywords: Generalized linear mixed model; EBLUP; MCMC; Logit; Dutch Household Budget Survey (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1515/jos-2016-0051 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:vrs:offsta:v:32:y:2016:i:4:p:963-986:n:13

DOI: 10.1515/jos-2016-0051

Access Statistics for this article

Journal of Official Statistics is currently edited by Annica Isaksson and Ingegerd Jansson

More articles in Journal of Official Statistics from Sciendo
Bibliographic data for series maintained by Peter Golla ().

 
Page updated 2025-03-20
Handle: RePEc:vrs:offsta:v:32:y:2016:i:4:p:963-986:n:13