WEGO: A Simultaneous Equation Model with Panel Data for Small Area Estimation

On Wednesday, April 23, 2025, BPS Statistics Sumatera Utara Province held a WEGO (Wadah Edukasi dan Gagasan Optimal) session with the theme "A Simultaneous Equation Model with Panel Data for Small Area Estimation", presented by Reny Ari Noviyanti.

Reny Ari Noviyanti presented her research on Small Area Estimation (SAE). The study developed and applied a Simultaneous Equation Model with Panel Data (referred to as SERY) as an SAE approach to improve the accuracy of statistical estimates for small areas (such as sub-districts), particularly in the context of limited survey sample sizes.

Small Area Estimation (SAE) is a statistical method used to generate parameter estimates for areas or population subgroups with small sample sizes, addressing the limitations of unreliable direct estimates. SAE works by leveraging auxiliary information and integrating data from various sources—such as surveys, administrative records, and big data—through statistical modeling.

Using the 3SLS-REML method, the study successfully derived the EBLUP estimator for the SERY model. To evaluate the estimation efficiency of the developed model, the research also obtained the Mean Square Error (MSE) estimator for the SERY model.