Evaluations of small area composite estimators based on the iterative proportional fitting algorithm

This article deals with the use of sample size dependent composite estimators in spatial microsimulation approaches for small area estimation. This approach has been applied to regression-based small area estimation approaches but never to our knowledge to spatial microsimulation approaches. In this paper, we extend the iterative proportional fitting (IPF) spatial microsimulation technique to small area composite estimators. Using a simulation study, we show both the impact of sample size and the gains from composite estimation to the mean squared error of IPF-based composite estimators. The target variable used is a binary variable reporting good health or bad health.