5. Conclusions and discussion
We have formulated two different time series models for changes over time in the age profiles of six household positions that men and women can occupy at any point in time. These household positions are living alone, cohabiting, living with spouse, lone parent, living in some other private household position, and living in an institution. Preserving the characteristic features of such age profiles while accounting for their changes over time is an important task when predicting the household positions of individuals into the future. Both models are random walk with drift (RWD) models, in which the year-on-year step for the household parameter consists of a certain fixed term (the drift) plus a normally distributed error term with zero expectation. We tested two different versions of the RWD model, namely one based on the Lee–Carter model (LCRWD model), which was originally developed for age patterns of mortality, and the other starting from the Brass relational model, which also stemmed from mortality analyses (Brass-RWD model). When the models are applied to data from the Netherlands for the period 1996–2010, we find that the Brass-RWD model predicts more realistic age profiles of household parameters than the LC-RWD model. This is because of the particular form of the LC-RWD model. When empirical age profiles show a cross-over (a downward trend for some ages, and an upward trend for others), the LC-RWD model is not appropriate, as one of its parameters, namely the b(x)-vector, may have both positive and negative values. This may lead to extrapolated age patterns for future years that are distorted strongly. This distortion becomes more severe for more distant years, because the b(x) values are multiplied by falling or increasing values of a second vector, namely the time index k(t) of the model. Extrapolations obtained using the BrassRWD model did not show these kinds of distortions in our application.