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Top-down estimates are rough estimates that use surrogates to estimate project time and cost. Also called macro estimates.
Bottom-up estimates are detailed estimates of work packages usually made by those who are most familiar with the task. Also called micro estimates.
An example to me is when the city opened proposed bidding on the Shipyard project here in town where groups presented ideas for that prime property. Their ideas were top-down estimates in order to sale their idea of winning the bid. Shad Kahn's investment group were awarded the bid, but as it turned out what was presented has not come to fruition.
In a perfect world I would prefer bottom-up estimating because of the accuracy and attention to detail that comes with it. But because projects are different and require methods, times and cost, top-down or bottom-up may be better.
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