SAE Manual Sections 1 to 4_1 (May 06).pdf - National Statistical ...

SAE Manual Sections 1 to 4_1 (May 06).pdf - National Statistical ... SAE Manual Sections 1 to 4_1 (May 06).pdf - National Statistical ...

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A Guide to Small Area Estimation - Version 1.1 05/05/2006 The ABS intends to periodically update this manual. Therefore, the ABS would welcome any comments and suggestions from users. Readers who would like more information or who would like to forward comments on this manual may contact any of the following ABS officers: Location Contact Name Phone Number Email address Central Office Daniel Elazar +61 2 6252 6962 daniel.elazar@abs.gov.au NSW Edward Szoldra +61 2 9268 4214 edward.szoldra@abs.gov.au QLD Brett Frazer John Preston SA Justin Lokhorst Philip Bell +61 7 3222 6028 +61 7 3222 6229 +61 8 8237 7476 +61 8 8237 7304 brett.frazer@abs.gov.au john.preston@abs.gov.au justin.lokhorst@abs.gov.au philip.bell@abs.gov.au TAS Keith Farwell +61 3 6222 5889 keith.farwell@abs.gov.au VIC Elsa Lapiz +61 3 9615 7364 elsa.lapiz@abs.gov.au WA Carl Mackin +61 8 9360 5250 carl.mackin@abs.gov.au Australian Bureau of Statistics 2

A Guide to Small Area Estimation - Version 1.1 05/05/2006 Contents 1 Introduction 5 1.1 What are Small Area Estimates? 5 1.2 Background of the Small Area Practice Manual 6 1.3 Purpose 7 1.4 What are the primary uses for Small Area Estimates? 9 1.5 When should Small Area Estimates be Produced? 9 2 Assessing User Requirements 10 2.1 User Requirements 10 3 Some issues in Small Area Estimation 14 3.1 Sources of Additional Information 14 3.2 Basic Conditions for Success 18 3.3 Choice of Small Area 20 3.4 Variable of Interest 22 3.5 Quality of Auxiliary Data 22 3.6 Confidentiality 24 4 Choice of Small Area Techniques 25 4.1 Types of Small Area Estimation Techniques 25 4.1.1 Simple Small Area Methods 25 4.1.2 Regression Methods 26 4.2 The Modelling Framework 28 4.3 Trade-off between Quality, Cost, Time and Effort 33 5 Case Studies of Small Area Applications 36 5.1 Simple Small Area Models 36 5.1.1 Broad Area Ratio Estimator with No Auxiliary Data 36 5.1.2 Broad Area Ratio Estimator with Auxiliary Data 42 5.2 Regression Based Models 46 5.2.1 Overview 46 5.2.2 Framework for Regression Based Models 48 5.2.3 Regression Based Synthetic Estimates 51 5.2.4 Generating Small Area Estimates from Person Level Models 56 5.2.5 Discussion of Examples 1-4 60 Australian Bureau of Statistics 3

A Guide <strong>to</strong> Small Area Estimation - Version 1.1 05/05/20<strong>06</strong><br />

The ABS intends <strong>to</strong> periodically update this manual. Therefore, the<br />

ABS would welcome any comments and suggestions from users.<br />

Readers who would like more information or who would like <strong>to</strong><br />

forward comments on this manual may contact any of the<br />

following ABS officers:<br />

Location Contact Name Phone Number Email address<br />

Central Office Daniel Elazar +61 2 6252 6962 daniel.elazar@abs.gov.au<br />

NSW Edward Szoldra +61 2 9268 4214 edward.szoldra@abs.gov.au<br />

QLD Brett Frazer<br />

John Pres<strong>to</strong>n<br />

SA Justin Lokhorst<br />

Philip Bell<br />

+61 7 3222 6028<br />

+61 7 3222 6229<br />

+61 8 8237 7476<br />

+61 8 8237 7304<br />

brett.frazer@abs.gov.au<br />

john.pres<strong>to</strong>n@abs.gov.au<br />

justin.lokhorst@abs.gov.au<br />

philip.bell@abs.gov.au<br />

TAS Keith Farwell +61 3 6222 5889 keith.farwell@abs.gov.au<br />

VIC Elsa Lapiz +61 3 9615 7364 elsa.lapiz@abs.gov.au<br />

WA Carl Mackin +61 8 9360 5250 carl.mackin@abs.gov.au<br />

Australian Bureau of Statistics 2

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