Advances in Medical Education

 

Robust Forecasting of Fertility Trends in Bangladesh

Authors:
Md. Asif Iqbal1 and Md. Aminul Hoque2

1. Department of Statistics, University of Rajshshi, Rajshahi-6205, Bangladesh.
Email: asif_rajbd@yahoo.com
2. Department of Statistics, University of Rajshahi, Rajshahi-6205, Bangladesh.
Email: mdaminulh@gmail.com

Correspondence:
Dr. Md. Aminul Hoque
Associate Professor, Department of Statistics, University of Rajshahi, Rajshahi-6205, Bangladesh.
Mobile: +88-1914254017,
Fax: +88-721-750064 (off.)
Email: mdaminulh@gmail.com

 

ABSTRACT

We utilized a newly developed robust forecasting technique for fertility projection using age specific fertility rates from 1974-2002 in Bangladesh. It combines the ideas of functional data analysis to model age specific fertility in time trends, non parametric smoothing method to smooth data, decomposed (using principal components analysis) to estimate basic functions that represent the functional curve and forecast the fertility trends using an automatic modelling framework for selecting an exponential smoothing method. Overall, the twenty year forecast suggested that the fertility decline of Bangladesh will continue in future. A set of three basic functions minimized the mean integrated squared forecasting error and account for 98.6% of variation around the mean fertility curve. The basis function models for young mothers in their teens and the mothers aged over 40 explained maximum (86.5%) of the total variation. Forecasts show greatest decline among these two age groups. Finally, the total fertility rate will achieve the replacement level of fertility by 2013. Based on the findings of this study, it may suggest that attention should be focused on providing educational facilities particularly among women and encourage contraceptive use in order to keep the declining level of fertility in Bangladesh. All analyses were performed using a new statistical programming language R.

Key Words: Robust forecasting, basic function, functional curve, exponential smoothing, forecasting error, fertility curve, R language, replacement level.

1. Introduction

Accurate estimates of future age-specific fertility are critical for allocation of resources to fertility control programmes and evaluation of family planning programmes. There has been a surge of interest in the problem of fertility and mortality forecasting in the last few years, driven by the need for good forecasts to inform government policy and planning.

Fundamental changes in welfare policy are taking place in many countries as a result of forecasts of an increasing elderly population. These age-specific population forecasts rely on age-specific forecasts of fertility and mortality rates. Therefore, any improvements in mortality and fertility forecasting have an immediate impact in guiding policy decisions regarding the allocation of current and future resources. Future fertility forecasts are of interest to governments in planning children's services.

Papers by Rogers (1986) and Thompson et al. (1987) first suggested fitting curves to annual age-specific fertility rates, forecasting the parameters of the curves using time series techniques, and then using the forecasted curves to generate forecasts of future age-specific fertility rates. Bozik and Bell ( August 1987) presented an approach based on a principal components approximation to the age-specific fertility rates that avoids the problem of the error in the fitted curve that is not negligible to a large extent, while still reducing dimensionality. They compared this approach with direct univariate modeling of all the age-specific rates, and with the curve fitting approaches. The approach appears to have potential for producing reasonable forecasts and forecast intervals for the age-specific rates using a small number of components. Bell et al., (1988) projected fertility by combining short-term forecasts from time series models with long-term demographic judgmental projections. They had selected a particular time series model for the series to be forecast, fits the model to the data, and uses the fitted model to produce point and interval forecasts.

The autoregressive-integrated-moving average (ARIMA) models discussed by Box and Jenkins (1970) comprise one popular class of models. Hyndman (2003) proposed automatic forecasts of large numbers of univariate time series. Automatic forecasting algorithms must determine an appropriate time series model, estimate the parameters and compute the forecasts. The most popular automatic forecasting algorithms are based on either exponential smoothing or ARIMA models.

Forecasting population has long been one of the public faces of forecasting (along with the weather and the stock market), and Heather Booth (2004) contributed first in review of forecasting in demography. Her paper contains an impressive and comprehensive critique of the past and potential future of demographic forecasting.

In this paper we represent a robust approach of forecasting age-specific fertility rates that combines ideas from functional data analysis, nonparametric smoothing and robust statistics proposed by Hyndman and Ullah (2005). Their approach is a generalization of the method of Lee and Carter (1992), and has the following advantages:

  • fertility rates are modeled as continuous functions of age so that subtle patterns of variation between years are captured;
  • data are smoothed prior to estimating the basis functions, thus reducing observational error;
  • the approach forecasts the entire function for future time periods with prediction intervals;
  • the method is robust to outlying years;
  • the flexibility of the approach allows the incorporation of important covariates such as treatment effects into the modeling.

The purpose of this study is to demonstrate the utility of this new modeling and forecasting method for estimating future age-specific trends in fertility, using age-specific fertility data of Bangladesh from 1974 to 2002. Here we will apply functional data analysis techniques to model age-specific fertility rates in time trends, and forecast entire age-specific fertility functions using a state-space approach.


2 Methodology

2.1 Sources of Data

Annual Bangladesh fertility rates (1974-2002) for age groups 15-19, 20-24, 25-29, 30-34, 35-39, 40-44 and 45-49 were taken from the Statistical yearbook of Bangladesh, (BBS- 2004 and 1987, Pocket Statistical Year Book- 1980). These are defined as the number of live births during the calendar year, according to the age of the mother, per 1,000 of the female resident population of the same age at 30 June. Since all the age-specific population data for the successive years are not available, we have estimated the entire values of number of female population using exponential growth rate. Also the SYBs reported ASFR for different years were collected from different sources, such as, SYBs reported ASFR for the year 1974 based on data from the Bangladesh Retrospective Survey of Fertility and Mortality, London; rates for 1971-1975 from Bangladesh Population Control and Family Planning Division, 1978; rates for 1978 from the Bangladesh Demographic Pilot Survey, BBS 1978; and rates for the years 1980 to 2002 based on Vital Registration System, (VRS) BBS.

2.2 Functional Data Analysis

With functional data methods, data can be smooth curves or functions. In the case of age specific fertility, rates are treated as smooth functions of age. The basic idea behind functional data analysis is to express discrete observations in the form of a function, and then draw information from a collection of functional data by applying concepts from multivariate data analysis. Moreover, functional data analysis mainly uses Fourier series, spline or B-spline smoothing techniques in transforming vector-valued data into functions. In this study we will use constrained and weighted penalized regression splines for fertility data preferred by Hyndman et al. (2005).
Let denote the log of the observed fertility rate for age x in year t. Let us assume there is an underlying smooth function that we are observing with error.
Thus, we observe the functional time series t = 1 K, n, i = 1 K, p, where
(1)

where Xi is the center of age-group i (i = 1 ,…, p)
is an iid standard normal random variable and
allows the amount of noise to vary with x.

We are interested in forecasting for and

The error variance is computed as follows.
Let pt(x) denote the observed fertility rate per thousand women for mothers of age x in year t and Nt(x) is the female resident population of age x in year t.

Then pt(x) is approximately binomially distributed with estimated variance .
So the variance of yt(x) = log[pt(x)] is (via a Taylor approximation)
(2)

Define weights equal to the inverse variances and constrain the fitted curves to be concave.
There are various smoothing techniques available to estimate the function from the discrete observations. For each year t, the smooth curves were estimated using a weighted median smoothing B-spline, constrained to be concave. For these data , is obtained from (2) and weights set to the inverse variances .

The n smooth curves are our functional observations, {ft(xi)}where and For the data considered here, four of these are shown in Figure 2.

2.3 Fitting and Decomposition of Smoothed Data

After constructing the functional observations, we have to fit the model
(3)
where is the mean log fertility rate across years,
is a set of orthogonal basis functions, and
is the model error which is assumed to be serially uncorrelated.

Now we wish to estimate the optimal set of K orthogonal basis functions. Specifically, for a given K, we want to find the basis functions which minimize the mean integrated squared error:
(4)

This is achieved using functional principal components decomposition (Ramsay and Silverman, 1997) applied to the smooth curves {} which gives the least number of basis functions, enables informative interpretations and gives coefficients which are uncorrelated with each other.

Using functional data analysis technique and principal component decomposition to estimate the basis functions, a model with K = 3 basis functions was selected. A set of K = 3 basis function minimized the MISFE, while estimating an additional basis function did not contribute to a further reduction in the MISFE.

2.4 Forecasting Framework

We estimate future values of fertility by forecasting the entire function for and . The coefficients of the fitted function are forecast using time series models. The forecast coefficients are then multiplied by the basis functions, resulting in forecasts of mortality curves.

Let denote the h-step ahead forecast of and let denote the h-step ahead forecast of f n+h (X). Then
(5)
To forecast the coefficients in equation (5), a variety of time series forecasting methods are available. In this study we use state-space models for exponential smoothing (Hyndman, et al., 2002), which underlies the damped Holt's method. This was selected as it extrapolates the local trends seen in the coefficient series while damping them to avoid nonsensical long-term forecasts. However forecasts from exponential smoothing methods are estimated recursively where recent observations are given more weight than historical data. Makridakis et al. (1998) present a modeling framework based on the taxonomy proposed by Pegels (1969) and the framework is expanded in Hyndman et al. (2002), who show how models can be automatically selected for a given time series.

Hyndman and Ullah (2005) have shown that the forecast variance can be obtained by adding the variances from each of the terms in equations (1) and (3). Therefore,
(6)
where, denotes all observed data,
can be obtained from time series model,
is the variance of the smooth estimate , can be obtained from the smoothing method used,

is computed using the approximations (2),
and v(x) is estimated by averaging for each x

A 100(1-?) % prediction interval for yt(x) is then constructed as where is the 1-?/2 standard normal quantile.

The accuracy of the fertility forecasts is computed by minimizing the mean integrated squared forecasting error (MISFE) which is defined as
(7)

where ; h=1,…m denote the forecast error for (2) and N is the minimum number of observations used in the fitting model.
In our implementation the robustness parameter was set to = 3 and the minimum number of observations used in fitting the models was N = 10. All analysis are performed using the R implementation of the S language (R development Core Team, 2006).


3 Results and Discussions

Figure 1 represents the data of age specific fertility rates and log fertility rates respectively, from the year 1974 to 2002 for age groups 15-19, 20-24, 25-29, 30-34, 35-39, 40-44 and 45-49, which is shown as separate time series. Here fertility rates are converted to functional data by estimating a smooth curve through the observations, taking the centre of each group as the point of interpolation.

Detailed investigation suggests that much of the change in fertility occurred among the younger age groups, those 15-20 years of age. It is clear from both the figure that maximum fertility occurs among the age group 20-24 and 25-29. There are some up and down situations in fertility for all age groups showing before the mid 80's. Especially for the years 1977, 1978 and 1979, where the fertility rates for the age group 15-19 and 20-24 are 186 and 322 in 1977, 124 and 256 in 1978 and in 1979 those are 306 and 256. It might be the fertility rates that are collected from different sources causing the fluctuated situation in these particular years.

Figure 2 represents the fertility rates of Bangladesh for the selected years 1975, 1981, 1991 and 2001. All the years showed that before age 14 and after age 50 the rates decreased to the null as expected because we set a relatively arbitrary value for fertility rates at age 13 and 52 being 0.001 for all the years. It is clear from this figure that the fertility rates are declining for every age-group and the decrease in fertility is high in the recent years.

The first and second panel of Figure 3 shows that the fitted basis functions and associated coefficients for the fertility data, which are smoothed using median smoothing B-splines. Fitting a functional regression model with K = 3 basis functions accounts for 98.3 per cent of the variation around the mean log fertility curve. The proportion of variation explained by each basis function is 86.4, 8.4, 3.7 for K = 1, … , 3 (Table 1). It is apparent that the basis functions are modeling the fertility rates in different age ranges of mothers: "Basis function 1", , models for the difference between the young mothers in their teens and 20's, and mothers aged over 40's, since the curve shows two picks, one at age before 20's and other at age after 40's. The basis function 1 explained 86.5% of the total variation. Therefore this parameter controls the overall change in the trend in age-specific fertility of Bangladesh. "Basis function 2", , is complex, and contrasts those between the young mothers in their teens and 20s, mothers aged between 30 to 35 years, or the mothers aged over 50, with the other ages. This basis function explained only 8.4% of the total variation. "Basis function 3", , is also complex, models differences between mothers aged between 35 to 40 years and those in their teens. This basis function explained only 3.7% of the total variation.

Also the second panel of Figure represents the coefficients associated with each basis functions. The coefficients associated with basis function 1, , shows a rapid decreasing trend. In 1974 the value of is 0.83 and which is decreased to -0.59 in year 2002. The maximum value of occurs at year 1978 is 1.12. These results indicate that the young mothers in their teens and 20's, and mothers aged over 40's have behaved as giving less births after 80's. The coefficient associated with basis function 2, , represents an increase around 1990 and decrease during 1997's to the recent years. A very much up and down situation occurs before 1990's. It indicates that the young mothers in their teens and 20, mothers aged between 30 to 35 years and over 49 started to give less birth in the most recent years. The coefficient associated with basis function 3, , represents, although an increase around 1980 and a decrease during 1997's, but it is difficult to identify its appropriate behavior. Therefore it does not indicate that the mothers aged between 35 to 40 years are giving less births.

We computed 20 year estimates of future age-specific fertility rates using state space exponential smoothing models as described by Hyndman et al. (2002). The automatic model-selection algorithm chose models with additive errors and a damped trend. The model parameters were selected by minimization of the one-step MSE. Figure 3 represents the combination of twenty-year forecast coefficients with the estimated basis functions yields forecasts of the fertility curves for the years 2003-2022. The gray shaded regions are 90% prediction intervals.

The 20 years ahead forecast of , coefficient associated with basis function 1, with 90% predicted interval is represented in figure 4. Clearly a very much linearly decreasing line is showing in the shaded region. Which indicates that in future the young mothers in their teens and 20's, and mothers aged over 40's will give less births continuously.


Figure 4 represents the forecasts of fertility for the years 2001 and 2022, along with 90% prediction intervals. Clearly all age of women forecasts show a continuing decrease in fertility rates, with the greatest declines in the age of women 30 to 40. Forecast variance is high for age around 25. Also figure 4 indicates that young mothers and old aged mothers are less interested to givee birth than the mothers aged around 25. The maximum fertility contributed by the women 20-29 years of age will continue in the future.

Figure 5 displays the fitted total fertility rates of Bangladesh along with twenty years forecast of Bangladesh. The shaded region gives 90% prediction intervals. The vertical dotted line represents the replacement level of fertility and the horizontal line represents the year of achieving the replacement level of fertility of the population. It is clear from the figure that Bangladesh total fertility rate decreasing in future will continue. And the decreasing rate of fertility will increase after 2010. Also this figure indicates that Bangladesh total fertility will decrease below the replacement level of fertility around 2013 along with 90% prediction interval, which is a desire of population planners and policy-makers of most developing countries.


4. Conclusion

Population futures are central to a wide range of pressing concerns in Bangladesh today and underlie many aspects of social, economic and physical planning. The ability to incorporate both greater accuracy and uncertainty in population futures would present a major advance in decision-making and planning. In this study we adopt a methodological approach proposed by Hyndman and Ullah (2005) which models age as a functional covariate rather than a fixed variable, so that the age-shape of fertility varies over time, thereby enabling the models and forecasts to pick up subtle variations. To our knowledge, no other study has modeled or forecast form a model with age as a functional covariate of fertility over time. We have demonstrated the utility and flexibility of this newly developed approach to forecast age-specific fertility rates of Bangladesh. Our estimates suggest that fertility of Bangladesh will continue to decline in future. The overall change (84.6%) in trend in fertility of Bangladesh is controlled by the young mothers in their teens and mothers aged over 40's. Bangladesh total fertility will decrease below the replacement level of fertility around 2013.

Figure 1: Log fertility rates of Bangladesh viewed as separate time trends from 1974-2002.


Figure 2: Log fertility rates viewed as functional data and calculated using median smoothing B-splines constrained to be concave for years 1975, 1981, 1991 and 2001.


Figure 3: Basis functions and associated coefficients for the data shown in Tables 1. The gray shaded regions are the forecasts of the coefficients with 90% prediction intervals.


Figure 4: Forecasts of fertility rates for 2003 and 2022, along with 90% prediction intervals.


Figure 5: Forecasts of total fertility rates for the Bangladesh population, the gray-shaded area indicates 90% prediction intervals.

 

Table 1: Value of the fitted basis functions and the proportion of variation explained by each basis functions.

Age

Mean

13 -5.298 -1.53E-08 -1.00E-08 3.29E-08
14 -1.342 0.4680

0.3082

-0.8960
15 1.592 0.7589

0.5002

-1.4112
16 3.503 0.8724

0.5759

-1.5455
17 4.395 0.8093

0.5356

-1.3004
18 4.741 0.6674

0.4463

-0.8999
19 5.018 0.5448

0.3748

-0.5692
20 5.228 0.4421

0.3216

-0.3092
21 5.372 0.3592

0.2866

-0.1200
22 5.448 0.2960

0.2697

-0.0014
23 5.481 0.2525

0.2632

0.0753
24 5.492 0.2284

0.2589

0.1389
25 5.483 0.2237

0.2569

0.1895
26 5.454 0.2383

0.2572

0.2271
27 5.403 0.2721

0.2597

0.2519
28 5.341 0.3144

0.2650

0.2753
29 5.277 0.3541

0.2737

0.3087
30 5.210 0.3913

0.2857

0.3523
31 5.141 0.4260

0.3009

0.4060
32 5.070 0.4581

0.3195

0.4699
33 4.995 0.4864

0.3443

0.5318
34 4.916 0.5098

0.3779

0.5796
35 4.833 0.5282

0.4205

0.6133
36 4.746 0.5418

0.4719

0.6329
37 4.654 0.5504

0.5321

0.6385
38 4.545 0.5619

0.5693

0.6308
39 4.402 0.5843

0.5514

0.6109
40 4.228 0.6174

0.4785

0.5787
41 4.021 0.6614

0.3505

0.5342
42 3.781 0.7163

0.1674

0.4774
43 3.522 0.7702

-0.0559

0.4092
44 3.257 0.8113

-0.3046

0.3304
45 2.985 0.8397

-0.5783

0.2410
46 2.706 0.8553

-0.8773

0.1411
47 2.420 0.8581

-1.2008

0.0308
48 1.879 0.8208

-1.4215

-0.0629
49 0.837 0.7164

-1.4121

-0.1129
50 -0.706 0.5448

-1.1721

-0.1191
51 -2.751 0.3060

-0.7014

-0.0814
52 -5.298 -5.81E-09

1.99E-08

3.78E-09
Variation (%) 86.4 8.4 3.7

 

Table 2: Value of the fitted coefficients using a decomposition of order K=3.

Years Mean

1974 1 0.8328 0.4507 0.0132
1975 1 0.9828 -0.2306 0.2882
1976 1 0.6959 0.2080 -0.1261
1977 1 0.6959 0.2080 -0.1261
1978 1 1.1189 -0.2069 0.3027
1979 1 0.8111 0.2178 -0.4192
1980 1 0.5697 -0.2543 -0.0489
1981 1 0.4468 -0.1003 -0.1488
1982 1 0.4863 -0.0850 -0.0455
1983 1 0.1546 0.1306 0.0720
1984 1 0.4264 -0.1347 0.0286
1985 1 0.1489 -0.1287 0.0218
1986 1 0.1846 -0.1005 0.0317
1987 1 -0.0219 0.0842 -0.0305
1988 1 0.1495 -0.2422 0.0083
1989 1 0.1297 -0.1358 0.0310
1990 1 0.0362 -0.0277 0.0267
1991 1 -0.0093 -0.0398 0.0181
1992 1 -0.1036 0.0252 0.0005
1993 1 -0.3287 0.1619 0.0966
1994 1 -0.4584 0.1946 0.0843
1995 1 -0.5764 0.2609 0.0544
1996 1 -0.6066 0.2401 0.0848
1997 1 -0.6912 0.1761 0.0573
1998 1 -0.7396 0.1404 0.0297
1999 1 -1.1319 -0.1268 -0.0498
2000 1 -1.2668 -0.0391 -0.0167
2001 1 -1.3448 -0.0932 0.0579
2002 1 -0.5911 -0.5533 -0.2963


Table 3:
Twenty years forecast values of the first coefficient, along with 90% lower and upper prediction values.

Years Basis 1, Basis 2, Basis 3,
Point Forecast 90% interval Point Forecast 90% interval Point Forecast 90% interval
2003 -1.1332 (-1.4669,-0.7994) -0.1184 (-0.3801,0.1432) 0.1429 (-0.0590,0.3448)
2004 -1.2087 (-1.5424,-0.8750) -0.2695 (-0.5334,-0.0056) -0.1319 (-0.3534,0.0896)
2005 -1.2842 (-1.6180,-0.9505) -0.2355 (-0.5293,0.0583) 0 (-0.2489,0.2489)
2006 -1.3598 (-1.6935,-1.0261) -0.1552 (-0.4813,0.1708) 0 (-0.2489,0.2489)
2007 -1.4353 (-1.7691,-1.1016) -0.0847 (-0.4266,0.2572) 0 (-0.2489,0.2489)
2008 -1.5109 (-1.8446,-1.1772) -0.0381 (-0.3854,0.3092) 0 (-0.2489,0.2489)
2009 -1.5864 (-1.9201,-1.2527) -0.0126 (-0.3611,0.3360) 0 (-0.2489,0.2489)
2010 -1.6620 (-1.9957,-1.3282) -0.0011 (-0.3498,0.3477) 0 (-0.2489,0.2489)
2011 -1.7375 (-2.0712,-1.4038) 0.0028 (-0.3460,0.3515) 0 (-0.2489,0.2489)
2012 -1.8131 (-2.1468,-1.4793) 0.0031 (-0.3457,0.3519) 0 (-0.2489,0.2489)
2013 -1.8886 (-2.2223,-1.5549) 0.0023 (-0.3465,0.3511) 0 (-0.2489,0.2489)
2014 -1.9641 (-2.2979,-1.6304) 0.0014 (-0.3474,0.3501) 0 (-0.2489,0.2489)
2015 -2.0397 (-2.3734,-1.7060) 6.73E-04 (-0.3481,0.3495) 0 (-0.2489,0.2489)
2016 -2.1152 (-2.4490,-1.7815) 2.65E-04 (-0.3485,0.3491) 0 (-0.2489,0.2489)
2017 -2.1908 (-2.5245,-1.8571) 6.16E-05 (-0.3487,0.3488) 0 (-0.2489,0.2489)
2018 -2.2663 (-2.6000,-1.9326) -1.8E-05 (-0.3488,0.3488) 0 (-0.2489,0.2489)
2019 -2.3419 (-2.6756,-2.0081) -3.7E-05 (-0.3488,0.3487) 0 (-0.2489,0.2489)
2020 -2.4174 (-2.7511,-2.0837) -3.2E-05 (-0.3488,0.3488) 0 (-0.2489,0.2489)
2021 -2.4930 (-2.8267,-2.1592) -2.1E-05 (-0.3488,0.3488) 0 (-0.2489,0.2489)
2022 -2.5685 (-2.9022,-2.2348) -1.1E-05 (-0.3488,0.3488) 0 (-0.2489,0.2489)


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