ABSTRACT
Of late, there is a growing demand for small area statistics from both the public and private sectors. As a recent example, we may cite Bill H.R. 1645 passed by the House of Representatives on November 21, 1993. This bill requires the Secretary of Commerce to produce and publish at least every 2 years, beginning in 1996, current data related to the incidence of poverty in the United States. Specifically, the legislation states that “to the extent fea sible,” the Secretary shall produce estimates of poverty for states, counties, and local jurisdictions of governments and school districts. For school dis tricts, estimates are to be made of the number of poor children aged 5-17
years. It also specifies production of state and county estimates of the number of poor persons aged 65 and over. These statistics for small areas will be used by a broad range of customers, including policy-makers at the state and local level as well as the private sector. This includes the allocation of Federal and State funds, Federal funds being estimated as more than $30 billion.
