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'''Small area estimation''' is any of several [[statistical]] techniques involving the [[estimation]] of [[parameter]]s for small [[sub-population]]s, generally used when the sub-population of interest is included in a larger [[statistical survey|survey]].
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The term "small area" in this context generally refers to a small geographical area such as a county. It may also refer to a "small domain", i.e. a particular [[demographic]] within an area. If a survey has been carried out for the population as a whole (for example, a nation or state-wide survey), the [[sample size]] within any particular small area may be too small to generate accurate estimates from the data. To deal with this problem, it may be possible to use additional data (such as [[census]] records) that exists for these small areas in order to obtain estimates.
 
One of the more common small area [[Linear regression|models]] in use today is the 'nested area unit level regression model', first used in 1988 to model corn and soybean crop areas in Iowa. The initial survey data, in which farmers reported the area they had growing either corn or soybeans, was compared to estimates obtained from satellite mapping of the farms.
The final model resulting from this for unit/farm 'j' in country 'i' is<math>y_{ij} = x_{ij}'\beta +\mu_i +\epsilon_{ij}  \,</math>, where 'y' denotes the reported crop area, <math>\beta \,</math> is the regression coefficient, 'x' is the farm-level estimate for either corn or soybean usage from
the satellite data and <math>\mu \, </math> represents the county-level effect of any area characteristics unaccounted for.
 
==Further reading==
* G. E Battese, R. M Harter & W. A Fuller. "An error component model for prediction of county crop areas using survey and satellite data", ''Journal of the American Statistical Association'', 83, 28–36.
* M. Ghosh, J. N. K. Rao. "Small area estimation: An appraisal", ''Statistical Science'', vol 9, no.1 (1994), 55–76.
* Danny Pfefferman. "Small area estimation – New developments and directions", ''International Statistical Review'' (2002), 70, 1, 125–143.
* J. N. K. Rao (2003), ''Small area estimation'', Wiley, ISBN 0-471-41374-7.
 
[[Category:Estimation theory]]

Latest revision as of 16:46, 3 December 2014

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