Some recent advances in model-based small area estimation

J.N.K. Rao gives an overview of the methods and models used for small area estimation. This is an update of his previous overview (Ghosh and Rao, 1994, Statistical Science). He first presents a general discussion of small area models, making a distinction between area level models and unit level models. He then describes the development in three main approaches for inference based on these models: EBLUP, EB and HB, gives several examples of recent applications. Finally, he presents an interesting discussion identifying the gaps and areas that require further research.