Precision of exogenous post-stratification in small-area estimation based on a continuous national forest inventory

National forest inventories (NFIs) are designed to provide accurate information on forest resources at the national and regional levels, but there is also a demand for such information at smaller spatial scales. Auxiliary data such as satellite imagery have been used to facilitate small-area estimation. The commonly used method, k-nearest neighbour (k-NN), provides a model-based estimator for small areas, but a design-unbiased estimator for the mean square error is not available. Post-stratification (PS) is an alternative approach to using auxiliary information that allows for design-based variance estimation. In a case study using real inventory data of the Finnish NFI, we applied this method to the municipality level to explore the lower limit to the area for which the key forest parameters, forest area and growing stock volumes, can be estimated with sufficient precision. For PS, we employed exogenous forest resources maps based on the previous NFI round. In the municipalities of the two study provinces, the relative standard errors of total volume estimates ranged from 2.3% to 26.9%. They were smaller than 10% for municipalities with an area of 390 km 2 or larger, corresponding to approximately 100 or more sample plots on forestland. We also demonstrated the usefulness of design-unbiased variance estimation in showing discrepancies between design-based PS and model-based k-NN estimates.