Multivariate Small Area Estimation of Multidimensional Latent Economic Well‐being Indicators

Summary Factor analysis models are used in data dimensionality reduction problems where the variability among observed variables can be described through a smaller number of unobserved latent variables. This approach is often used to estimate the multidimensionality of well‐being. We employ factor analysis models and use multivariate empirical best linear unbiased predictor (EBLUP) under a unit‐level small area estimation approach to predict a...