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2016 | 17 | 1 | 41-66

Article title

A Comparison of Small Area Estimation Methods for Poverty Mapping

Content

Title variants

Languages of publication

EN

Abstracts

EN
We review main small area estimation methods for the estimation of general nonlinear parameters focusing on FGT family of poverty indicators introduced by Foster, Greer and Thorbecke (1984). In particular, we consider direct estimation, the Fay-Herriot area level model (Fay and Herriot, 1979), the method of Elbers, Lanjouw and Lanjouw (2003) used by the World Bank, the empirical Best/Bayes (EB) method of Molina and Rao (2010) and its extension, the Census EB, and finally the hierarchical Bayes proposal of Molina, Nandram and Rao (2014). We put ourselves in the point of view of a practitioner and discuss, as objectively as possible, the benefits and drawbacks of each method, illustrating some of them through simulation studies.

Year

Volume

17

Issue

1

Pages

41-66

Physical description

Contributors

  • 1Department of Statistics, Universidad Carlos III de Madrid. Address: C/Madrid 126, 28903 Getafe (Madrid), Spain, Tf: +34 916249859
author
  • 2Department of Statistics, Universidad Carlos III de Madrid. Address: C/Madrid 126, 28903 Getafe (Madrid), Spain, Tf: +34 916249887
author
  • 3School of Mathematics and Statistics, Carleton University

References

  • BATES, D., MAECHLER, M., BOLKER, B., WALKER, S., (2014). lme4: Linear mixed-effects models using Eigen and S4. R package version 1.1–7.
  • BATTESE, G.E., HARTER, R.M., FULLER, W.A., (1988). An error-components model for prediction of county crop areas using survey and satellite data, Journal of American Statistical Association, 83, 28–36.
  • CORREA, L., MOLINA, I., RAO, J.N.K., (2012). Comparison of methods for estimation of poverty indicators in small areas. Unpublished report.
  • DIALLO, M., RAO, J.N.K., (2014). Small Area Estimation of Complex Parameters Under Unit-level Models with Skew-Normal Errors. Proceedings of the Survey Research Section, American Statistical Association.
  • ELBERS, C., LANJOUW, J. O., LANJOUW, P., (2003). Micro-level Estimation of Poverty and Inequality. Econometrica, 71(1), 355–364.
  • FAY, R., HERRIOT, R., (1979). Estimates of income for small places: An application of James-Stein procedures to census data. Journal of American Statistical Association, 74, 269–277.
  • FOSTER, J., GREER, J., THORBECKE, E., (1984). A class of decomposable poverty measures. Econometrica, 52, 761–766.
  • GONZÁLEZ-MANTEIGA, W., LOMBARDÍA, M. J., MOLINA, I., MORALES, D., and SANTAMARÍA, L., (2008). Bootstrap mean squared error of a smallarea EBLUP. Journal of Statistical Computation and Simulation, 78, 443–462.
  • GRAFF, M., MARÍN, J.M., MOLINA, I., (2015). Estimation of poverty indicators in small areas under skewed distributions, Unpublished manuscript.
  • MOLINA, I., MORALES, D., (2009). Small area estimation of poverty indicators. Boletín de Estadística e Investigación Operativa, 25, 318–325.
  • MOLINA, I., MARHUENDA, Y., (2015), Sae: An R Package for Small Area Estimation, R Journal, in print.
  • MOLINA, I., RAO, J.N.K., (2010). Small area estimation of poverty indicators. The Canadian Journal of Statistics, 38, 369–385.
  • MOLINA, I. NANDRAM, B. and RAO, J.N.K., (2014). Small area estimation of general parameters with application to poverty indicators: a hierarchical Bayes approach. The Annals of Applied Statistics, 8(2), 852–885.
  • PFEFFERMANN, D., (2013). New important developments on small area estimation. Statistical Science, 28, 40–68.
  • RAO, J.N.K., (2003). Small Area Estimation. Hoboken, NJ: Wiley.
  • RAO, J.N.K., MOLINA, I., (2015). Small Area Estimation, Second Edition. Hoboken, NJ: Wiley, in print.
  • SINHA, S., RAO, J.N.K., (2009). Robust small area estimation. The Canadian Journal of Statistics, 37, 381–399.
  • VAN der WEIDE, R., ELBERS, C. (2013). Estimation of normal mixtures in a nested error model with an application to small area estimation of welfare. Speech presented at the SAE Conference 2013, Bangkok, Thailand.

Document Type

Publication order reference

Identifiers

YADDA identifier

bwmeta1.element.desklight-4cdb9c32-492c-47af-8eb3-f11dd47a307a
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