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

A Guide to Small Area Estimation - Version 1.1 05/05/2006
1.2 Background to the Small Area Practice Manual
The small area practice manual project was developed to give a simple and clear guide of
how to undertake small area estimation. The ABS has previously carried out a number of
small area estimates projects (See Appendix 1). In recent years user demand for these
kinds of statistics has increased. Most of this increase in demand has become apparent
during specific consultations between the ABS and key government users to gauge and
assess users’ medium and long term statistical data requirements. Consolidated
examples of these can be found in the Information Development Plan (IDP) (ABS, 2005)
(Catalogue 1362.0 to be released in early 2006) and State Statistical Priorities (ABS
Corporate Information - State Statistical Forum 16 February 2005)
This reflects the growing statistical sophistication of users. Also local government bodies
such as cities, councils and shires are taking on a greater role in the long term planning
and socio-economic development of their regions. This increase in demand for small
area data is occurring globally. In response, more advanced methods for producing
reliable small area statistics are being developed and are gaining methodological
acceptance. This was recognised at an international conference held on small area
statistics in Riga, Latvia in 1999 where the Deputy Australian Statistician encouraged
National Statistical Organisations to make greater use of model-based methods to
produce small area statistics (Trewin 1999). The paper also noted that explaining quality
is an especially important issue for a National Statistics Office when producing these
types of estimates and products.
Various areas within the ABS have been involved in the provision of small area estimates
to varying levels of sophistication in both the methods used and the quality of the
estimates produced. Table A.1 of Appendix 1 contains a selection of the major pieces of
small area work that have been conducted to date. In addition, there has been no
definitive set of clear, ABS wide guidelines on how to assess the quality of small area
estimates and what should be the agreed minimum level of quality required before
releasing small area statistics to external clients. In other words, what needs to be
developed is a cohesive, coordinated approach to the production of small area
estimates.
There is a strong need to set up a framework for the practice of small area estimation at
all levels of involvement in the small area statistical process. These include client services
areas in regional offices or Central Office (CO), Methodology Division, National
Statistical Centres and senior managers responsible for clearing and releasing small area
output. Such a framework is important for ensuring that consistent practices are used
across the ABS in producing small area estimates and that these practices accord with
best practices used both in the ABS and in statistical agencies overseas.
Australian Bureau of Statistics 6