IDEAS home Printed from https://ideas.repec.org/a/eee/soceps/v74y2021ics003801211930401x.html
   My bibliography  Save this article

Modelling demographic changes using simulation: Supportive analyses for socioeconomic studies

Author

Listed:
  • Mielczarek, Bożena
  • Zabawa, Jacek

Abstract

Demographic analyses play a supporting role in many socioeconomic studies. The credibility of the decisions taken by regional and national authorities often depends on the accuracy of population forecasts. Among the mathematical methods used to study demographic phenomena, system dynamics is well suited to address the dynamic complexity that characterises population changes, and this method offers a proven approach called chronological ageing. The best results are achieved using a variation of the method that assumes the availability of historical data at the same level of aggregation. This level of detail is usually available at the national or regional level; however, when collecting data on smaller regions, there are difficulties in obtaining the necessary information. This study introduces an approach we call ‘hierarchical cohorting’, which could be a solution when empirical data are not as detailed as needed for making credible population projections. We also present a simple and effective algorithm that allows researchers to include population projections when modelling expected future demand for services. We demonstrate the application of this algorithm for forecasting the number of patient visits to a regional healthcare system through a case study; however, the approach can be applied wherever a non-stationary flow of events defines the size and structure of demand for services. Our approach combines two perspectives: the macro-level of system dynamics to study demographic changes and the operational level of discrete simulation to model forecasted demand for hospital inpatient services.

Suggested Citation

  • Mielczarek, Bożena & Zabawa, Jacek, 2021. "Modelling demographic changes using simulation: Supportive analyses for socioeconomic studies," Socio-Economic Planning Sciences, Elsevier, vol. 74(C).
  • Handle: RePEc:eee:soceps:v:74:y:2021:i:c:s003801211930401x
    DOI: 10.1016/j.seps.2020.100938
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S003801211930401X
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.seps.2020.100938?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Brailsford, Sally C. & Eldabi, Tillal & Kunc, Martin & Mustafee, Navonil & Osorio, Andres F., 2019. "Hybrid simulation modelling in operational research: A state-of-the-art review," European Journal of Operational Research, Elsevier, vol. 278(3), pages 721-737.
    2. Tony Meagher & James Giesecke, 2008. "Population Ageing and Structural Adjustment," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 11(3), pages 227-247.
    3. Yuehong Tian & Xianglian Zhao, 2016. "Stochastic Forecast of the Financial Sustainability of Basic Pension in China," Sustainability, MDPI, vol. 8(1), pages 1-17, January.
    4. Davis, Peter & Lay-Yee, Roy & Pearson, Janet, 2010. "Using micro-simulation to create a synthesised data set and test policy options: The case of health service effects under demographic ageing," Health Policy, Elsevier, vol. 97(2-3), pages 267-274, October.
    5. van Sonsbeek, Jan-Maarten, 2010. "Micro simulations on the effects of ageing-related policy measures," Economic Modelling, Elsevier, vol. 27(5), pages 968-979, September.
    6. Milena Pavlova & Jelena Arsenijevic & Wim Groot & Godefridus G. Merode, 2012. "Projection of health service consumption and patient payment revenues in Central and Eastern European countries using system dynamics modeling," Society and Economy, Akadémiai Kiadó, Hungary, vol. 34(2), pages 359-379, June.
    7. Teresa Cardoso & Mónica Oliveira & Ana Barbosa-Póvoa & Stefan Nickel, 2012. "Modeling the demand for long-term care services under uncertain information," Health Care Management Science, Springer, vol. 15(4), pages 385-412, December.
    8. Mielczarek, Bożena, 2013. "Simulation model to forecast the consequences of changes introduced into the 2nd pillar of the Polish pension system," Economic Modelling, Elsevier, vol. 30(C), pages 706-714.
    9. Eggink, Evelien & Ras, Michiel & Woittiez, Isolde, 2017. "Dutch long-term care use in an ageing population," The Journal of the Economics of Ageing, Elsevier, vol. 9(C), pages 63-70.
    10. Jahangirian, Mohsen & Eldabi, Tillal & Naseer, Aisha & Stergioulas, Lampros K. & Young, Terry, 2010. "Simulation in manufacturing and business: A review," European Journal of Operational Research, Elsevier, vol. 203(1), pages 1-13, May.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Gouveia, Catarina & Kalakou, Sofia & Cardoso-Grilo, Teresa, 2023. "How to forecast mental healthcare needs? Distinguishing between perceived and unperceived needs and their impact on capacity requirements," Socio-Economic Planning Sciences, Elsevier, vol. 87(PA).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Thomas Vempiliyath & Maitri Thakur & Vincent Hargaden, 2021. "Development of a Hybrid Simulation Framework for the Production Planning Process in the Atlantic Salmon Supply Chain," Agriculture, MDPI, vol. 11(10), pages 1-17, September.
    2. Min Le & Xinrong Xiao & Dragan Pamučar & Qianling Liang, 2021. "A Study on Fiscal Risk of China’s Employees Basic Pension System under Longevity Risk," Sustainability, MDPI, vol. 13(10), pages 1-23, May.
    3. Piya Kerdlap & Aloisius Rabata Purnama & Jonathan Sze Choong Low & Daren Zong Loong Tan & Claire Y. Barlow & Seeram Ramakrishna, 2022. "Comparing the environmental performance of distributed versus centralized plastic recycling systems: Applying hybrid simulation modeling to life cycle assessment," Journal of Industrial Ecology, Yale University, vol. 26(1), pages 252-271, February.
    4. Jessica M. Mc Lay & Roy Lay-Yee & Barry J. Milne & Peter Davis, 2015. "Regression-Style Models for Parameter Estimation in Dynamic Microsimulation: An Empirical Performance Assessment," International Journal of Microsimulation, International Microsimulation Association, vol. 8(2), pages 83-127.
    5. Qing Zhao & Haijie Mi, 2019. "Evaluation on the Sustainability of Urban Public Pension System in China," Sustainability, MDPI, vol. 11(5), pages 1-20, March.
    6. Jinli Duan & Feng Jiao & Qishan Zhang & Zhibin Lin, 2017. "Predicting Urban Medical Services Demand in China: An Improved Grey Markov Chain Model by Taylor Approximation," IJERPH, MDPI, vol. 14(8), pages 1-12, August.
    7. Christian Wankmüller & Maximilian Kunovjanek & Robert Gennaro Sposato & Gerald Reiner, 2020. "Selecting E-Mobility Transport Solutions for Mountain Rescue Operations," Energies, MDPI, vol. 13(24), pages 1-19, December.
    8. Das, Saikat & Bose, Indranil & Sarkar, Uttam Kumar, 2023. "Predicting the outbreak of epidemics using a network-based approach," European Journal of Operational Research, Elsevier, vol. 309(2), pages 819-831.
    9. Nicholas-James Clavet & Jean-Yves Duclos & Bernard Fortin & Steeve Marchand, 2015. "Reforming Old Age Security: Effects and Alternatives," Canadian Tax Journal, Canadian Tax Foundation, vol. 63(2), pages 357-373.
    10. Said Outlioua & Abdesselam Fazouane, 2023. "Which factors affect the sustainability of pension schemes?," Economic Affairs, Wiley Blackwell, vol. 43(1), pages 89-108, February.
    11. Opacic, Luke & Sowlati, Taraneh & Mobini, Mahdi, 2018. "Design and development of a simulation-based decision support tool to improve the production process at an engineered wood products mill," International Journal of Production Economics, Elsevier, vol. 199(C), pages 209-219.
    12. Madeira, Carlos, 2021. "The long term impact of Chilean policy reforms on savings and pensions," The Journal of the Economics of Ageing, Elsevier, vol. 19(C).
    13. Huan Wang & Jianyuan Huang & Shuangyue Sun, 2019. "Assessment of the Financial Sustainability of China’s New Rural Pension Plan: Does the Demographic Policy Reform Matter?," Sustainability, MDPI, vol. 11(18), pages 1-22, September.
    14. Bouslah, B. & Gharbi, A. & Pellerin, R., 2016. "Integrated production, sampling quality control and maintenance of deteriorating production systems with AOQL constraint," Omega, Elsevier, vol. 61(C), pages 110-126.
    15. Sarris, Alexander, 2009. "Evolving Structure of World Agricultural Trade and Requirements for New World Trade Rules," Conference papers 331831, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    16. Jan Hagemejer & Marcin Bielecki & Karolina Goraus & Joanna Tyrowicz, 2014. "The Sooner The Better - The Welfare Effects of the Retirement Age Increase Under Various Pension Schemes," EcoMod2014 6868, EcoMod.
    17. Costanza Nosi & Antonella D’Agostino & Margherita Pagliuca & Carlo Alberto Pratesi, 2017. "Securing Retirement at a Young Age. Exploring the Intention to Buy Longevity Annuities through an Extended Version of the Theory of Planned Behavior," Sustainability, MDPI, vol. 9(6), pages 1-20, June.
    18. Khan, Imran & Hollebeek, Linda D. & Fatma, Mobin & Islam, Jamid Ul & Riivits-Arkonsuo, Iivi, 2020. "Customer experience and commitment in retailing: Does customer age matter?," Journal of Retailing and Consumer Services, Elsevier, vol. 57(C).
    19. Xiaohua Chen & Zaigui Yang, 2019. "Stochastically Assessing the Financial Sustainability of Individual Accounts in the Urban Enterprise Employees’ Pension Plan in China," Sustainability, MDPI, vol. 11(13), pages 1-20, June.
    20. Meritxell Solé & Guadalupe Souto & Concepció Patxot, 2019. "Sustainability and Adequacy of the Spanish Pension System after the 2013 Reform: A Microsimulation Analysis," Hacienda Pública Española / Review of Public Economics, IEF, vol. 228(1), pages 109-150, March.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:soceps:v:74:y:2021:i:c:s003801211930401x. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/seps .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.