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

A Guide to Small Area Estimation - Version 1.1 05/05/2006
A consistent approach to the production of small area estimates is important for the
following reasons:
o
o
o
o
a need for the ABS to more precisely understand users' small area needs, ie how they
utilise small area estimates in their decision making. Getting this right at the outset
will ensure effort is efficiently directed to producing small area estimates that are fit
for purpose.
to ensure that small area estimates are produced with sufficient quality and are
appropriate to user requirements.
to ensure that users fully understand the assumptions and conditions underpinning
output data and the fitness for use.
to ensure small area estimation methodologies are sound, robust and practicable for
a large range of small area estimation problems.
Linked to this is the broader issue of the circumstances in which the ABS should or
should not be producing small area estimates. These decisions need to be made by
determining the risk that the provision of such data will detract from informed decision
making.
This manual has been prepared on the basis of work done on small area estimates of
disability. Although the wording of the manual inadvertently reflects the context of a
household based population survey, the small area methods described can also be
applied to the context of economic/business collections. As further empirical studies are
applied to other data contexts we anticipate that the manual will be expanded and
adapted to include examples relating to economic data.
1.3 Purpose
This volume of the manual, which is the first of two volumes, the second of which will
contain a more technical treatment, aims to provide a simple non-technical guide on the
production, uses, quality and validation of small area estimates. The intended audience
includes survey practitioners, consultants, methodologists and users of small area data.
The broad objectives of the Small Area Estimation Practice Manual are as follows:
o
o
o
o
To build a stable bridge between the knowledge, the theory and the practice of small
area estimation while taking account of ABS priorities and policies with regards to
the production of small area statistics. This should result in a more consistent and
quality assured approach to producing small area estimates within the ABS.
To realise a quantum increase in the level of ABS knowledge and understanding of
small area estimation techniques, how and under what conditions they can be
applied, and how to measure or assess the quality of the small area estimates
produced.
To provide coherent, relevant, accurate and accessible information on small area
estimation practices and techniques which are used regularly by their intended
audiences and updated to reflect increases in knowledge and understanding.
To ensure that practitioners within the ABS have a clear understanding of the quality
and assumptions underpinning the small area estimates produced and that these are
clearly communicated to users so that small area estimates are used appropriately
and for the purposes intended.
Intended audience
Australian Bureau of Statistics 7