Small-area estimation in the presence of area-level correlated responses |
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| Authors: | Luca Bartoli Maria Chiara Pagliarella Carlo Russo |
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| Institution: | 1. Department of Economics and Law, University of Cassino and Southern Lazio, Italy;2. Department of Experimental Medicine, University of Perugia, Italy |
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| Abstract: | The Fay-Herriot area-level model for correlated response data is augmented with a between-groups-of-domains effect. Correlated-response parameters of small-area estimates no longer need the assumption of spatial contiguity. A simulation shows that area-level correlated-response observations increase the efficiency of the estimates, but do not reduce the biases. |
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| Keywords: | Linear mixed-effects model best linear unbiased prediction correlated observations prediction mean squared error |
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