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

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