On small area estimation under a sub-area level model

Mahmoud Torabi and J.N.K. Rao

Journal of Multivariate Analysis, 2014, vol. 127, issue C, 36-55

Abstract: We propose an extension of the well-known Fay and Herriot (1979) area level model to sub-area level. Not only this model may be used to estimate small area means by borrowing strength from related areas, but also by borrowing strength from sub-areas to obtain more efficient sub-area estimators. Model-based empirical best linear unbiased prediction (EBLUP) estimators are obtained from the BLUP estimators by replacing the model parameters by suitable estimators, using an iterative method based on weighted residual sum of squares. Second order approximations to the mean squared error (MSE) of the EBLUP estimators are obtained and then used to drive MSE estimators unbiased to second order. Results of simulation studies on the performance of the proposed estimators are also provided.

Keywords: Best linear unbiased prediction; Fay–Herriot model; Linear mixed models; Mean squared error; Variance components (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (18)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0047259X14000244
Full text for ScienceDirect subscribers only

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:eee:jmvana:v:127:y:2014:i:c:p:36-55

Ordering information: This journal article can be ordered from
http://www.elsevier.com/wps/find/supportfaq.cws_home/regional
https://shop.elsevie ... _01_ooc_1&version=01

DOI: 10.1016/j.jmva.2014.02.001

Access Statistics for this article

Journal of Multivariate Analysis is currently edited by de Leeuw, J.

More articles in Journal of Multivariate Analysis from Elsevier
Bibliographic data for series maintained by Catherine Liu ().