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CURRENT POPULATION SURVEY STATE-LEVEL VARIANCE ESTIMATION

The problem of estimation for small area means and totals is well-documented in the literature. Not so, the problem of estimating variances for small areas. Yet, small area variance estimators suffer from the same general problem as small area estimators of means and totals – a small sample size on which to base the estimates. Current Population Survey state-level variance estimators are an example of variance estimation with relatively small sample sizes. In this paper we examine two modeling approaches to address this small area estimation problem.