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A Stochastic Sub-national Population Projection Methodology with an Application to the Waikato Region of New Zealand

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Author Info

  • Michael P. Cameron

    ()
    (University of Waikato)

  • Jacques Poot

    ()
    (University of Waikato)

Abstract

In this paper we use a stochastic population projection methodology at the sub-national level as an alternative to the conventional deterministic cohort-component method. We briefly evaluate the accuracy of previous deterministic projections and find that there is a tendency for these to be conservative: under-projecting fast growing populations and over-projecting slow growing ones. We generate probabilistic population projections for five demographically distinct administrative areas within the Waikato region of New Zealand, namely Hamilton City, Franklin District, Thames-Coromandel District, Otorohanga District and South Waikato District. Although spatial interaction between the areas is not taken into account in the current version of the methodology, a consistent set of cross-regional assumptions is used. The results are compared to official sub-national deterministic projections. The accuracy of sub-national population projections is in New Zealand strongly affected by the instability of migration as a component of population change. Unlike the standard cohort-component methodology, in which net migration levels are projected, the key parameters of our stochastic methodology are age-gender-area specific net migration rates. The projected range of rates of population growth is wider for smaller regions and/or regions more strongly affected by net migration. Generally, the identified and modelled uncertainty makes the traditional ‘mid range’ scenario of sub-national population projections of limited use for policy analysis or planning beyond a relatively short projection horizon. Directions for further development of a stochastic sub-national projection methodology are suggested.

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File URL: ftp://mngt.waikato.ac.nz/RePEc/wai/pscdps/dp-70.pdf
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Bibliographic Info

Paper provided by University of Waikato, Population Studies Centre in its series Population Studies Centre Discussion Papers with number dp-70.

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Length: 37 pages
Date of creation: 31 Mar 2010
Date of revision:
Handle: RePEc:wai:pscdps:dp-70

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Related research

Keywords: cohort-component model; stochastic simulation; population; fertility; mortality; migration; sub-national area;

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References

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  1. Jacques Poot, 2009. "Trans-Tasman Migration, Transnationalism and Economic Development in Australasia," Working Papers 09_05, Motu Economic and Public Policy Research.
  2. Jacob A. Mincer & Victor Zarnowitz, 1969. "The Evaluation of Economic Forecasts," NBER Chapters, in: Economic Forecasts and Expectations: Analysis of Forecasting Behavior and Performance, pages 1-46 National Bureau of Economic Research, Inc.
  3. M. Cameron & W. Cochrane & J. Poot, 2008. "End-user Informed Demographic Projections for Hamilton up to 2041," Population Studies Centre Discussion Papers dp-66, University of Waikato, Population Studies Centre.
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