BHF and copula models in small area estimation for household per capita expenditure in Bogor District

Small area statistics are required when the sample size is small to produce estimates with adequate precision. The assumptions underlying Battese Harter Fuller (BHF) unit-level models may often be unrealistic in some applications. Copula is an alternative approach when the assumptions are violated....

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Main Authors: NADIRA SRI BELINDA, KHAIRIL ANWAR NOTODIPUTRO, AGUS MOHAMAD SOLEH
Format: Article
Language:English
Published: Universitas Syiah Kuala, Faculty of Mathematics and Natural Science 2024-06-01
Series:Jurnal Natural
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Online Access:https://jurnal.usk.ac.id/natural/article/view/37278
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author NADIRA SRI BELINDA
KHAIRIL ANWAR NOTODIPUTRO
AGUS MOHAMAD SOLEH
author_facet NADIRA SRI BELINDA
KHAIRIL ANWAR NOTODIPUTRO
AGUS MOHAMAD SOLEH
author_sort NADIRA SRI BELINDA
collection DOAJ
description Small area statistics are required when the sample size is small to produce estimates with adequate precision. The assumptions underlying Battese Harter Fuller (BHF) unit-level models may often be unrealistic in some applications. Copula is an alternative approach when the assumptions are violated. This research discusses the performance of BHF and Copula in small area estimation (SAE) for estimating household per capita expenditure in sub-district levels. This study presents household per capita expenditure, which has a skewed distribution. Due to the fact that the data contains outliers, an appropriate method to handle outliers is also considered. In this research, the Gaussian and the Clayton Copulas are used. The results showed that the performance of BHF was better than Gaussian and Clayton Copulas, as indicated by small root mean square error (RMSE) with an average of 1.14, while the average RMSE of Gaussian copula was 2.71 and Clayton copula was 2.63. Furthermore, the coefficient of variation (CV) of BHF was also smaller compared to Gaussian and Clayton Copulas, and the resulting estimates can be categorized as reliable based on the CV of less than 25%.
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institution Kabale University
issn 1411-8513
2541-4062
language English
publishDate 2024-06-01
publisher Universitas Syiah Kuala, Faculty of Mathematics and Natural Science
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spelling doaj-art-4a56d38c616e4856a63b0f0193c30a3d2025-08-20T03:51:59ZengUniversitas Syiah Kuala, Faculty of Mathematics and Natural ScienceJurnal Natural1411-85132541-40622024-06-01242617210.24815/jn.v24i2.3727818403BHF and copula models in small area estimation for household per capita expenditure in Bogor DistrictNADIRA SRI BELINDA0KHAIRIL ANWAR NOTODIPUTRO1AGUS MOHAMAD SOLEH2IPB UniversityIPB UniversityIPB UniversitySmall area statistics are required when the sample size is small to produce estimates with adequate precision. The assumptions underlying Battese Harter Fuller (BHF) unit-level models may often be unrealistic in some applications. Copula is an alternative approach when the assumptions are violated. This research discusses the performance of BHF and Copula in small area estimation (SAE) for estimating household per capita expenditure in sub-district levels. This study presents household per capita expenditure, which has a skewed distribution. Due to the fact that the data contains outliers, an appropriate method to handle outliers is also considered. In this research, the Gaussian and the Clayton Copulas are used. The results showed that the performance of BHF was better than Gaussian and Clayton Copulas, as indicated by small root mean square error (RMSE) with an average of 1.14, while the average RMSE of Gaussian copula was 2.71 and Clayton copula was 2.63. Furthermore, the coefficient of variation (CV) of BHF was also smaller compared to Gaussian and Clayton Copulas, and the resulting estimates can be categorized as reliable based on the CV of less than 25%.https://jurnal.usk.ac.id/natural/article/view/37278bhf, copula, household per capita expenditure, sae, unit level
spellingShingle NADIRA SRI BELINDA
KHAIRIL ANWAR NOTODIPUTRO
AGUS MOHAMAD SOLEH
BHF and copula models in small area estimation for household per capita expenditure in Bogor District
Jurnal Natural
bhf, copula, household per capita expenditure, sae, unit level
title BHF and copula models in small area estimation for household per capita expenditure in Bogor District
title_full BHF and copula models in small area estimation for household per capita expenditure in Bogor District
title_fullStr BHF and copula models in small area estimation for household per capita expenditure in Bogor District
title_full_unstemmed BHF and copula models in small area estimation for household per capita expenditure in Bogor District
title_short BHF and copula models in small area estimation for household per capita expenditure in Bogor District
title_sort bhf and copula models in small area estimation for household per capita expenditure in bogor district
topic bhf, copula, household per capita expenditure, sae, unit level
url https://jurnal.usk.ac.id/natural/article/view/37278
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AT khairilanwarnotodiputro bhfandcopulamodelsinsmallareaestimationforhouseholdpercapitaexpenditureinbogordistrict
AT agusmohamadsoleh bhfandcopulamodelsinsmallareaestimationforhouseholdpercapitaexpenditureinbogordistrict