Markov Forecasting Methods for Welfare Caseloads
Forecasting welfare caseloads, particularly turning points, has become more important than ever. Since welfare reform, welfare has been funded via a block grant, which means that unforeseen changes in caseloads can have important fiscal implications for states. In this paper I develop forecasts based on the theory of Markov chains. Since today's caseload is a function of the past caseload, the caseload exhibits inertia. The method exploits that inertia, basing forecasts of the future caseload on past functions of entry and exit rates. In an application to California welfare data, the method accurately predicted the late-2003 turning point roughly one year in advance.
|Date of creation:||Oct 2005|
|Publication status:||published as Grogger, Jeffrey, 2007. "Markov forecasting methods for welfare caseloads," Children and Youth Services Review, Elsevier, vol. 29(7), pages 900-911, July.|
|Contact details of provider:|| Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.|
Web page: http://www.nber.org
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Jeffrey Grogger & Steven J. Haider & Jacob Alex Klerman, 2003.
"Why Did the Welfare Rolls Fall During the 1990s? The Importance of Entry,"
03-07, RAND Corporation.
- Jeffrey Grogger & Steven J. Haider & Jacob Klerman, 2003. "Why Did the Welfare Rolls Fall During the 1990's? The Importance of Entry," American Economic Review, American Economic Association, vol. 93(2), pages 288-292, May.
- Pagan,Adrian & Ullah,Aman, 1999.
Cambridge University Press, number 9780521355643, October.
- Jacob Alex Klerman & Steven J. Haider, 2004. "A Stock-Flow Analysis of the Welfare Caseload," Journal of Human Resources, University of Wisconsin Press, vol. 39(4).
When requesting a correction, please mention this item's handle: RePEc:nbr:nberwo:11682. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ()
If references are entirely missing, you can add them using this form.