Policy-related small-area estimation
N.T. Longford
Abstract
A method of small-area estimation with a utility function is developed.
The utility characterises a policy planned to be implemented
in each area, based on the area's estimate of a key quantity.
It is shown that the commonly applied empirical Bayes and composite
estimators are inefficient for a wide range of utility functions.
Adaptations for limited budget to implement the policy are explored.
An argument is presented for a closer integration of estimation and
(regional) policy making.
In South African Journal of Statistics 49, 105-119, 2015.
Also UPF Working Paper No. 1427.