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Paper #995

Title:
An assessment of empirical Bayes and composite estimators for small areas
Author:
Nicholas Longford
Date:
November 2006
Abstract:
We compare a set of empirical Bayes and composite estimators of the population means of the districts (small areas) of a country, and show that the natural modelling strategy of searching for a well fitting empirical Bayes model and using it for estimation of the area-level means can be inefficient.
Keywords:
Composite estimator, empirical Bayes models, mean squared error, small-area estimation
JEL codes:
C15
Area of Research:
Statistics, Econometrics and Quantitative Methods

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