Adaptively Robust Small Area Estimation: Balancing Robustness and Efficiency of Empirical Bayes Confidence Intervals

Daisuke Kurisu, Takuya Ishihara, Shonosuke Sugasawa

Empirical Bayes small area estimation based on the well-known Fay-Herriot model may produce unreliable estimates when outlying areas exist. Existing robust methods against outliers…