Exploration of approaches to small area estimation with measurement errors and their application to Indonesian household surveys / by Ika Yuni Wulansari, Stephen Woodcock, and James Brown. : CS11-522/2024-1-28E-PDF

"The United Nations Sustainable Development Goals require detailed, disaggregated data, typically obtained through household surveys. However, surveys alone cannot meet these granular statistics. To address this, National Statistical Institutes adopt small area methods, but these face challenges as auxiliary variables, often derived from surveys, introduce measurement errors into the models. The aim is the application of measurement errors correction in classic Fay-Herriot area level model. The results demonstrate the robustness of the standard approach and ignoring measurement error but show there are specific scenarios where correction for measurement errors is beneficial. The approach is applied to a case-study utilising Indonesian household survey data"--Abstract, page 1.

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