Linear mixed models underpin many small areas estimation (SAE) methods. In this paper with investigate SAE based on linear models with spatially correlated small area effects where the neighbourhood structure is described by a contiguity matrix. Such models allow efficient use of spatial auxiliary information in SAE.
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Citation
Chandra, H., Salvati, N. & Chambers, R. L. (2007). Small area estimation for spatially correlated populations - A comparison of direct and indirect model-based methods. Statistics in Transition, 8 (2), 331-350.