INVERSE GAUSSIAN MODEL FOR SMALL AREA ESTIMATION VIA GIBBS SAMPLING

Authors

  • Fassil Nebebe
  • Cynthia M. DeSouza
  • Yogendra P. Chaubey

Keywords:

Finite population sampling, hierarchical Bayesian inference, lognormal model, MCMC integration, shrinkage estimates

Abstract

We present a Bayesian method for estimating small area parameters under an inverse
Gaussian model. The method is extended to estimate small area parameters for finite populations. The
Gibbs sampler is proposed as a mechanism for implementing the Bayesian paradigm. We illustrate the
method by application to household income survey data, comparing it against the usual lognormal
model for positively skewed data.

Published

2023-02-23