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Projecting Fatalities in Crashes Involving Older Drivers, 2000-2025

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B.2. INDEPENDENT VARIABLES PROJECTIONS<br />

B.2.1 Income<br />

The follow<strong>in</strong>g expla<strong>in</strong>s the process by which <strong>in</strong>come for the elderly was forecasted by<br />

Standard & Poor’s DRI for use <strong>in</strong> the Oak Ridge National Laboratory (ORNL) projection<br />

model. These projections can be seen <strong>in</strong> Tables B.5 and B.6.<br />

B.2.1.1 Standard & Poor’s DRI<br />

Tables B.5 and B.6 conta<strong>in</strong> historical estimates and forecasts of the median money<br />

<strong>in</strong>come of persons of age 65 and over <strong>in</strong> 1998 dollars for demographic groups def<strong>in</strong>ed: by<br />

gender, with<strong>in</strong> age groups 65-69, 70-74, 75-79, 80-84, and 85+, for the U.S. and each of four<br />

Census regions, at five-year <strong>in</strong>tervals for the period 1975-<strong>2025</strong>.<br />

Historical annual time series for 1975-1998 were tabulated from the Annual<br />

Demographic File of the Current Population Survey. All series were converted to constant<br />

dollars us<strong>in</strong>g the Census Bureau’s CPIU-X1 deflator. These annual time series show<br />

substantial year-to-year variation. To elim<strong>in</strong>ate outliers <strong>in</strong> the historical data, model-predicted<br />

values are shown for historical years <strong>in</strong> the accompany<strong>in</strong>g spreadsheet.<br />

The money <strong>in</strong>come of persons aged 65 and over comes from the follow<strong>in</strong>g sources (1995<br />

data):<br />

Earn<strong>in</strong>gs 18%<br />

Social Security 42%<br />

Retirement/pensions 20%<br />

Interest, dividends, rental <strong>in</strong>come 16%<br />

Other 5%<br />

DRI’s Quarterly Model of the U.S. Economy conta<strong>in</strong>s some variables that are related<br />

to these components of the money <strong>in</strong>come of the elderly. The forecast<strong>in</strong>g models for regions<br />

do not <strong>in</strong>clude such direct measures of <strong>in</strong>come but do provide projections of total per capita<br />

<strong>in</strong>come, which were used to capture regional differences that affect all demographic groups.<br />

GM Project G.6 B - 6<br />

October <strong>2000</strong>

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