Per capita expenditure modeling using spatial eblup approach – sae

L. Amaliana, - Per capita expenditure modeling using spatial eblup approach – sae. Mathematics and Statistics.

Abstract

Per capita expenditure of an area is a welfare indicator of the community. It is also a reflection of the economic capacity in meeting basic needs. Bali is the second richest province in Indonesia. This study aims to model the per capita expenditure of Bali at the sub-district level using Spatial-EBLUP (SEBLUP) approach in SAE. Small area estimation (SAE) modeling is an indirect estimation approach capable of increasing the effectiveness of sample sizes and minimizing variance. The heterogeneity of an area is influenced by other areas around. Everything is related to one another, but something closer will be more influential than something far away. Therefore, the spatial effect can be included in the random effect of a model small area, which is called as SEBLUP model. The selection of a spatial weights matrix is very important in spatial data modeling. It represents the neighborhood relationship of each spatial observation unit. A SEBLUP model needs a spatial weights matrix, which can be based on distance (radial distance and power distance), contiguity (queen), and a combination of distance and contiguity (radial distance and queen contiguity). The result of the implementation of the SEBLUP approach in per capita expenditure of Bali shows that the SEBLUP model with radial distance spatial weights matrix is the best model with the smallest ARMSE. South Denpasar Sub-district is the most prosperous sub-district with the highest per capita expenditure in Bali. Meanwhile, Abang Sub-district is the smallest per capita expenditure.

English Abstract

Per capita expenditure of an area is a welfare indicator of the community. It is also a reflection of the economic capacity in meeting basic needs. Bali is the second richest province in Indonesia. This study aims to model the per capita expenditure of Bali at the sub-district level using Spatial-EBLUP (SEBLUP) approach in SAE. Small area estimation (SAE) modeling is an indirect estimation approach capable of increasing the effectiveness of sample sizes and minimizing variance. The heterogeneity of an area is influenced by other areas around. Everything is related to one another, but something closer will be more influential than something far away. Therefore, the spatial effect can be included in the random effect of a model small area, which is called as SEBLUP model. The selection of a spatial weights matrix is very important in spatial data modeling. It represents the neighborhood relationship of each spatial observation unit. A SEBLUP model needs a spatial weights matrix, which can be based on distance (radial distance and power distance), contiguity (queen), and a combination of distance and contiguity (radial distance and queen contiguity). The result of the implementation of the SEBLUP approach in per capita expenditure of Bali shows that the SEBLUP model with radial distance spatial weights matrix is the best model with the smallest ARMSE. South Denpasar Sub-district is the most prosperous sub-district with the highest per capita expenditure in Bali. Meanwhile, Abang Sub-district is the smallest per capita expenditure.

Item Type: Article
Uncontrolled Keywords: Per Capita Expenditure, Spatial Weights Matrix, SEBLUP
Depositing User: Endang Susworini
Date Deposited: 16 Dec 2021 03:37
Last Modified: 16 Dec 2021 03:37
URI: http://repository.ub.ac.id/id/eprint/187309
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