Indonesia Case Small Area Estimation

Abstract

The demand for reliable statistic in smaller regions such as sub-district area is inevitable as a basis for a good planning and effective decision-making processes. The Statistics Indonesia has put many efforts to meet this demand using direct estimation. However. there are some instances in which direct estimation fails to produce estimates with the required precision due to the limited number of effective sample size. The increasing demand for small area estimates has motivated the need to develop more reliable methods for producing small area estimates with higher precision. In this paper we describe some SAE techniques for Indonesia case. In particular, we extend the EBLUP model for the logarithmic scale interested variable and we modified the Prasad-Rao (1990) MSE for this problem. An application to BPS data demonstrates the satisfactory performance of the methods.