TY - JOUR
T1 - Transforming response values in small area prediction
AU - Sugasawa, Shonosuke
AU - Kubokawa, Tatsuya
N1 - Funding Information:
We would like to thank the Associate Editor and the four reviewers for many valuable comments and helpful suggestions which led to an improved version of this paper. We would also like to thank professor J. N. K. Rao for helpful comments and suggestions and also thank attendees at the seminar in Statistics Canada. This work was supported by JSPS KAKENHI Grant Numbers, JP16H07406, JP15H01943 and JP26330036.
Publisher Copyright:
© 2017 Elsevier B.V.
PY - 2017/10
Y1 - 2017/10
N2 - In real applications of small area estimation, one often encounters data with positive response values. The use of a parametric transformation for positive response values in the Fay–Herriot model is proposed for such a case. An asymptotically unbiased small area predictor is derived and a second-order unbiased estimator of the mean squared error is established using the parametric bootstrap. Through simulation studies, a finite sample performance of the proposed predictor and the MSE estimator is investigated. The methodology is also successfully applied to Japanese survey data.
AB - In real applications of small area estimation, one often encounters data with positive response values. The use of a parametric transformation for positive response values in the Fay–Herriot model is proposed for such a case. An asymptotically unbiased small area predictor is derived and a second-order unbiased estimator of the mean squared error is established using the parametric bootstrap. Through simulation studies, a finite sample performance of the proposed predictor and the MSE estimator is investigated. The methodology is also successfully applied to Japanese survey data.
KW - Dual power transformation
KW - Empirical Bayes estimation
KW - Fay–Herriot model
KW - Mean squared error
KW - Positive-valued data
KW - Small area estimation
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U2 - 10.1016/j.csda.2017.03.017
DO - 10.1016/j.csda.2017.03.017
M3 - Article
AN - SCOPUS:85018862998
SN - 0167-9473
VL - 114
SP - 47
EP - 60
JO - Computational Statistics and Data Analysis
JF - Computational Statistics and Data Analysis
ER -