tennessee population projections matthew c. harris, ph.d. assistant professor, economics center for...

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Tennessee Population Projections Matthew C. Harris, Ph.D. Assistant Professor, Economics Center for Business and Economic Research

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Page 1: Tennessee Population Projections Matthew C. Harris, Ph.D. Assistant Professor, Economics Center for Business and Economic Research

Tennessee Population Projections

Matthew C. Harris, Ph.D. Assistant Professor, Economics

Center for Business and Economic Research

Page 2: Tennessee Population Projections Matthew C. Harris, Ph.D. Assistant Professor, Economics Center for Business and Economic Research

Demographic Data - Sources

• Decennial Census

• American Community Survey

• Census Bureau Population Estimates

• Population Projections

Page 3: Tennessee Population Projections Matthew C. Harris, Ph.D. Assistant Professor, Economics Center for Business and Economic Research

Decennial Census

• Mandated by Article 1, Section 2 of U.S. Constitution

• Based on actual counts of persons• Used to determine number of members in

House of Representatives from each state• Provides the base population for the

annual population estimates series

Page 4: Tennessee Population Projections Matthew C. Harris, Ph.D. Assistant Professor, Economics Center for Business and Economic Research

Population Estimates

• Calculated number of people living in an area at a specific point in time.

• Derived using models that account for changes in:• Births• Deaths• Net Migration

• Used to control/inform ACS, CPS, etc.• Used for denominators by state/local government

agencies and non-profits as denominators in rate calculations and program fund allocations.

Page 5: Tennessee Population Projections Matthew C. Harris, Ph.D. Assistant Professor, Economics Center for Business and Economic Research

Population Projections

• Estimates of the population for future dates

• Relies on assumptions about future births, deaths, and net migration.

• Used by government, business, and non-profits for planning purposes and demand forecasts.

Page 6: Tennessee Population Projections Matthew C. Harris, Ph.D. Assistant Professor, Economics Center for Business and Economic Research

What We Do

• A ‘cohort-component’ model• Single Age – Sex – Race/Ethnicity - County

• Birth: county-age-race specific birth rates• Death: Statewide death rates, augmented

by SSA tables for changing life-expectancy.

• Net Migration – Use decennial census data.

Page 7: Tennessee Population Projections Matthew C. Harris, Ph.D. Assistant Professor, Economics Center for Business and Economic Research

Invisible Forces

• Net Migration is Unobservable• Birth and death are documented in vital statistics

‘Tennessee Department of Health’• Net migration is the ‘residual’

• Population is known• Births are known• Deaths are known• Net Migration makes up the difference

• Most volatile component of population change• Most critical component of short-term population

change.

Page 8: Tennessee Population Projections Matthew C. Harris, Ph.D. Assistant Professor, Economics Center for Business and Economic Research

TN Doing What TN Does

• From a population standpoint: • Grow at about 1.0% per year on average• Noisily

• 1930’s – 11.4% Growth• 1940’s – 12.9% Growth• 1950’s – 8.4% Growth• 1960’s – 10.0% Growth• 1970’s – 17.0% Growth • 1980’s – 6.2% Growth• 1990’s – 16.7% Growth• 2000’s – 11.5% Growth• 2010’s – 8.0% Growth (at current pace)

Page 9: Tennessee Population Projections Matthew C. Harris, Ph.D. Assistant Professor, Economics Center for Business and Economic Research

What We Project - Statewide

2020: 7.1M

2030: 7.8M

2040: 8.5M2050: 9.3M

Approx. 1% Growth

Page 10: Tennessee Population Projections Matthew C. Harris, Ph.D. Assistant Professor, Economics Center for Business and Economic Research

All of this has happened before

Page 11: Tennessee Population Projections Matthew C. Harris, Ph.D. Assistant Professor, Economics Center for Business and Economic Research

All of this will happen again

Page 12: Tennessee Population Projections Matthew C. Harris, Ph.D. Assistant Professor, Economics Center for Business and Economic Research

Cohort Component Model

• We model population growth as a pure population process. • Births• Deaths• Historical Net Migration

• We do NOT include structural economic factors:• Structural Economic Changes• Planned Development• Infrastructure Changes

Page 13: Tennessee Population Projections Matthew C. Harris, Ph.D. Assistant Professor, Economics Center for Business and Economic Research

Why we exclude economic data

• To include economic data in a model, you need:• Consistent variables and consistent impact.

• An issued commercial development permit has to mean the same thing in County X as it does in County Y.

• Accurate forecasts of all economic variables included.• When accurate, including economic variables may be helpful.• Forecast error in economic variables may (and often does) make

overall population forecasts less accurate.

• Most economic variables are even noisier than net migration.

• Incorporating them ALSO requires an understanding of who those variables bring in to a given county.

• Population growth is actually a pretty stable process.

Page 14: Tennessee Population Projections Matthew C. Harris, Ph.D. Assistant Professor, Economics Center for Business and Economic Research

A compounding effect

𝑌=𝑋 𝛽+𝜖

Outcome(e.g., Population)

Things we can observe

Effect of Things we can

observe on the Outcome

Things we cannot observe

Page 15: Tennessee Population Projections Matthew C. Harris, Ph.D. Assistant Professor, Economics Center for Business and Economic Research

Short term gain, long term pain

Pop

Economic Activity

IndicatorsWRONG

WRONG

WRONG

WRONG

WRONG

WRONG

WRONG

WRONG

WRONG

WRONG

WRONG

WRONG

WRONG

WRONG

WRONG

WRONG

WRONG

WRONG

WRONG

WRONG

WRONG

Page 16: Tennessee Population Projections Matthew C. Harris, Ph.D. Assistant Professor, Economics Center for Business and Economic Research

Key Trends from the Projection

2010201320162019202220252028203120342037204020432046204920522055205820612064

0 2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 12,000,000

County Population by Race

Black Non-HispanicHispanicOther Non-HispanicWhite Non-Hispanic

Population

Year

Page 17: Tennessee Population Projections Matthew C. Harris, Ph.D. Assistant Professor, Economics Center for Business and Economic Research

A few key numbers on race

• 2010: • 75.6% White Non-Hispanic• 16.5% Black Non-Hispanic• 4.6% Hispanic• 3.2% Non-Hispanic, NWoBA.

• 2040:• 63.6% White Non-Hispanic• 17.2% Black Non-Hispanic• 11.1% Hispanic• 7.9% Non-Hispanic, NWoBA

Page 18: Tennessee Population Projections Matthew C. Harris, Ph.D. Assistant Professor, Economics Center for Business and Economic Research

Hispanic Population Growth

• 1990: 32,741• 2000: 123,838

• 278% Growth

• 2010: 290,059• 134% Growth

• 2020: 461,704 (projected)• 59% Growth

• 2030: 678,738 (projected)• 47% Growth

• 2040: 954,115 (projected)• 40.5% Growth

Page 19: Tennessee Population Projections Matthew C. Harris, Ph.D. Assistant Professor, Economics Center for Business and Economic Research

Age Histogram, 2010

Age under 5

5 to 9 10 to 14

15 to 19

20 to 24

25 to 29

30 to 34

35 to 39

40 to 44

45 to 49

50 to 54

55 to 59

60 to 64

65 to 69

70 to 74

75 to 79

80 to 84

85 and up

0

50000

100000

150000

200000

250000

300000

350000

400000

450000

500000

Page 20: Tennessee Population Projections Matthew C. Harris, Ph.D. Assistant Professor, Economics Center for Business and Economic Research

Age Histogram, 2040

Age under 5

5 to 9 10 to 14

15 to 19

20 to 24

25 to 29

30 to 34

35 to 39

40 to 44

45 to 49

50 to 54

55 to 59

60 to 64

65 to 69

70 to 74

75 to 79

80 to 84

85 and up

0

100000

200000

300000

400000

500000

600000

Page 21: Tennessee Population Projections Matthew C. Harris, Ph.D. Assistant Professor, Economics Center for Business and Economic Research

Births Per Year – United StatesYear Births

1915-1925 Approx 2.9M PA1930 2.6M1935 2.3M1940 2.5M1945 2.8M1950 3.6M1955 4.1M1957 4.3M1960 4.2M1964 4.0M

1965-1989 3.1M-3.9M, trough in OPEC Years1990 4.2M

2000’s 4.0-4.1M2010’s 3.7-3.8M

Page 22: Tennessee Population Projections Matthew C. Harris, Ph.D. Assistant Professor, Economics Center for Business and Economic Research

Urbanization

• 10 Largest Counties 2010: 53% of TN Pop

• 10 Largest Counties 2040: 56% of TN Pop

• 10 Largest Counties 2060: 60% of TN Pop

Shelby Davidson Knox Rutherford Hamilton

Williamson Montgomery Sumner Sullivan Blount

Page 23: Tennessee Population Projections Matthew C. Harris, Ph.D. Assistant Professor, Economics Center for Business and Economic Research

Top 10 – Absolute ChangeCounty Absolute Population Change 2010-2040

Rutherford 275,106

Davidson 250,427

Williamson 222,432

Knox 152,180

Shelby 148,936

Montgomery 138,908

Wilson 93,888

Hamilton 90,081

Sumner 84,704

Sevier 58,441

Page 24: Tennessee Population Projections Matthew C. Harris, Ph.D. Assistant Professor, Economics Center for Business and Economic Research

Mid-cap GrowthCounty Absolute Population Change 2010-2040

Sevier 58,441

Washington 43,677

Robertson 35,564

Maury 32,178

Bradley 29,380

Tipton 28,182

Putnam 27,134

Cumberland 25,979

Madison 23,589

Fayette 23,511

Page 25: Tennessee Population Projections Matthew C. Harris, Ph.D. Assistant Professor, Economics Center for Business and Economic Research

Top 10 – Growth RateCounty CAGR 2010-2040

Williamson 2.68%

Rutherford 2.41%

Wilson 2.02%

Montgomery 1.99%

Sevier 1.68%

Fayette 1.60%

Robertson 1.44%

Sumner 1.42%

Sequatchie 1.37%

Loudon 1.29%

Page 26: Tennessee Population Projections Matthew C. Harris, Ph.D. Assistant Professor, Economics Center for Business and Economic Research

Growth Rate 11-20County CAGR 2010-2040

Cumberland 1.27%

Tipton 1.27%

Blount 1.14%

Davidson 1.12%

Maury 1.12%

Bedford 1.10%

Putnam 1.06%

Washington 1.01%

Knox 1.01%

Dickson 0.99%

Page 27: Tennessee Population Projections Matthew C. Harris, Ph.D. Assistant Professor, Economics Center for Business and Economic Research

(865) [email protected]