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Evaluating the Approaches of Small Area Estimation Using Poverty Mapping Data

Author

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  • Md. Mizanur Rahman
  • Deluar J. Moloy
  • Md. Sifat Ar Salan

Abstract

Nowadays, estimation demand in statistics is increased worldwide to seek out an estimate, or approximation, which may be a value which will be used for various purpose, albeit the input data could also be incomplete, uncertain, or unstable. The development of different estimation methods is trying to provide most accurate estimate and estimation theory deals with finding estimates with good properties. The demand of small area estimation (SAE) method has been increasing rapidly around the world because of its reliability compared to the traditional direct estimation methods, especially in the case of small sample size. This paper mainly focuses on the comparison of several indirect small area estimation methods (post-stratified synthetic, SSD and EB estimates) with traditional direct estimator based on a renowned data set. Direct estimator is approximately unbiased but SSD and Post-stratified synthetic estimator is extreme biased. To cope up the problem, we conduct another model-based estimation procedure namely Empirical Bayes (EB) estimator, which is unbiased and compare them using their coefficient of variation (CV). To check the model assumption, we used Q-Q plot as well as a Histogram to confirm the normality, bivariate correlation, Akaike information criterion (AIC). JEL classification numbers: C13, C51, C51.

Suggested Citation

  • Md. Mizanur Rahman & Deluar J. Moloy & Md. Sifat Ar Salan, 2021. "Evaluating the Approaches of Small Area Estimation Using Poverty Mapping Data," Journal of Statistical and Econometric Methods, SCIENPRESS Ltd, vol. 10(2), pages 1-1.
    • Handle: RePEc:spt:stecon:v:10:y:2021:i:2:f:10_2_1
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    References listed on IDEAS

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    1. Gauri Sankar Datta & J. N. K. Rao & David Daniel Smith, 2005. "On measuring the variability of small area estimators under a basic area level model," Biometrika, Biometrika Trust, vol. 92(1), pages 183-196, March.
    2. Marcin Szymkowiak & Andrzej Młodak & Łukasz Wawrowski, 2017. "Mapping Poverty At The Level Of Subregions In Poland Using Indirect Estimation," Statistics in Transition New Series, Polish Statistical Association, vol. 18(4), pages 609-635, December.
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    More about this item

    Keywords

    Small Area Estimation; Direct Estimation; Indirect Estimation; Empirical Bayes Estimator; Poverty Mapping.;
    All these keywords.

    JEL classification:

    • C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation

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