Development and accuracy of projections of population and households in the united states

The history of the official U. S. projections of population and house-holds in recent decades is briefly reviewed, with particular attention to methodology and the relation of the methodology to the accuracy of the projections. The introduction of the cohort-component procedure in the 1930’s opened the way for separate analysis of the trend of the components of births, deaths, and net immigration in connection with making population projections. As a further development, the period-fertility method of projecting births gave way in the 1960’s to the cohort-fertility method. Consideration is now being given to various methods involving parity-progression procedures. Some alternative methods and problems of measuring the accuracy of population projections are then considered. The percent “error” in the projected population growth, by components and age, and the range from high to low expressed as a percent should also be examined in addition to the percent “error” in the total population. However accuracy is measured, the projections made in the 1930’s and 1940’s were often wide of the mark, and those made in the 1950’s and 1960’s failed to anticipate the sharp changes which occurred, even though the actual figures usually fell within the range projected. Elaboration of projection methodology has not resulted in any great increase in the precision of the projections, largely because birth rates have fluctuated widely, and the fluctuations have proven difficult, if not impossible, to predict. The projections of households have had a roughly similar history, and the methods and problems of evaluation are somewhat similar. Their development has been characterized by the introduction of alternative and changing “headship” rates and increasing disaggregation of the data and procedures. The paper concludes with some generalizations based on U. S. experience. Although refinement of methods may contribute little to accuracy, accuracy is only one aspect of the usefulness of projections. The need for conditional projections and their analytical usefulness are such that there is no question that we should confidently continue to make them.