Comparison of mean squared error estimators under the Fay-Herriot model: application to poverty and percentage of food expenditure data
Open Access
- 6 February 2020
- journal article
- research article
- Published by Hacettepe University in Hacettepe Journal of Mathematics and Statistics
- Vol. 49 (1), 439-457
- https://doi.org/10.15672/hujms.516601
Abstract
Small area estimates have received much attention from both private and public sectors due to the growing demand for effective planning of health services, apportioning of government funds and policy and decision making. The uncertainty of empirical best linear unbiased predictor (EBLUP) estimates is widely assessed by mean squared error (MSE). MSEs are criticized as they are not area specific since they do not depend on the direct estimators from the survey. In this paper, we compare the performances of different MSE estimators with respect to the relative bias and relative risk using a Monte Carlo simulation study. Simulation results suggest the superiority of the proposed MSEs over the existing methods in some situations. As a case study, the 2010/11 household consumption expenditure survey (HCES) and the 2007 housing and population census of Ethiopia have been used to study the performances of the MSE estimators.Keywords
This publication has 19 references indexed in Scilit:
- Small area estimation of poverty proportions under area-level time modelsComputational Statistics & Data Analysis, 2012
- Parametric bootstrap methods for bias correction in linear mixed modelsJournal of Multivariate Analysis, 2012
- Estimation of mean squared error of model-based small area estimatorsTEST, 2010
- An adjusted maximum likelihood method for solving small area estimation problemsJournal of Multivariate Analysis, 2010
- Mixed model prediction and small area estimationTEST, 2006
- On measuring the variability of small area estimators under a basic area level modelBiometrika, 2005
- The Estimation of the Mean Squared Error of Small-Area EstimatorsJournal of the American Statistical Association, 1990
- An Error-Components Model for Prediction of County Crop Areas Using Survey and Satellite DataJournal of the American Statistical Association, 1988
- A Class of Decomposable Poverty MeasuresEconometrica, 1984
- Estimates of Income for Small Places: An Application of James-Stein Procedures to Census DataJournal of the American Statistical Association, 1979