Mortality and life expectancy forecasting for a group of populations in developed countries: A multilevel functional data method

Han Lin Shang*

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

20 Citations (Scopus)

Abstract

A multilevel functional data method is adapted for forecasting age-specific mortality for two or more populations in developed countries with high-quality vital registration systems. It uses multilevel functional principal component analysis of aggregate and population-specific data to extract the common trend and population-specific residual trend among populations. If the forecasts of population-specific residual trends do not show a long-term trend, then convergence in forecasts may be achieved. This method is first applied to age- and sex-specific data for the United Kingdom, and its forecast accuracy is then further compared with several existing methods, including independent functional data and product-ratio methods, through a multi-country comparison. The proposed method is also demonstrated by age-, sex- and state-specific data in Australia, where the convergence in forecasts can possibly be achieved by sex and state. For forecasting age-specific mortality, the multilevel functional data method is more accurate than the other coherent methods considered. For forecasting female life expectancy at birth, the multilevel functional data method is outperformed by the Bayesian method of Raftery, Lalic and Gerland [Demogr. Res. 30 (2014) 795–822]. For forecasting male life expectancy at birth, the multilevel functional data method performs better than the Bayesian methods in terms of point forecasts, but less well in terms of interval forecasts. Supplementary materials for this article are available online.
Original languageEnglish
Pages (from-to)1639-1672
Number of pages34
JournalAnnals of Applied Statistics
Volume10
Issue number3
DOIs
Publication statusPublished - Sep 2016
Externally publishedYes

Keywords

  • Augmented common factor method
  • coherent forecasts
  • functional time series
  • life expectancy forecasting
  • mortality forecasting
  • product-ratio method

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