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Title: mortality improvement models additional
Description: This note allows master's students to learn additional mortality improvement models representing multiple models. It is as straightforward as possible.

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Mortality Improvement Models
Stochastic Models
1
...
Central death rate
π‘šπ‘₯ =

-

1

π‘žπ‘₯

=

1
∫0 𝑠𝑝π‘₯

𝑑𝑠
With constant force of mortality, π‘šπ‘₯ = πœ‡π‘₯ and
Under UDD:
1

∫

𝑠𝑝π‘₯ πœ‡π‘₯+𝑠 𝑑𝑠
1
∫0 𝑠𝑝π‘₯ 𝑑𝑠
π‘žπ‘₯ = 1 βˆ’ 𝑒 βˆ’π‘šπ‘₯

∫0

1
𝑠𝑝π‘₯

𝑑𝑠 = ∫ (1 βˆ’ π‘ π‘žπ‘₯ ) 𝑑𝑠 = 1 βˆ’ 0
...
5π‘žπ‘₯
π‘šπ‘₯
π‘žπ‘₯ =
1 + 0
...
Lee-Carter model
ln π‘š(π‘₯, 𝑑) = 𝛼π‘₯ + 𝛽π‘₯ 𝐾𝑑 + πœ€π‘₯,𝑑
-

Ignore πœ€π‘₯,𝑑
𝛼π‘₯ and 𝛽π‘₯ only depend on age
𝐾𝑑 is a time series
...
Lognormal distribution
For 𝑋~π‘π‘œπ‘Ÿπ‘šπ‘Žπ‘™(πœ‡, 𝜎 2 ),
2
𝐸[𝑒 𝑋 ] = 𝑒 πœ‡+0
...

d
...
Cairns-Blake-Dowd Models
a
...
Original CBD model
(1)
(2)
π‘™π‘ž(π‘₯, 𝑑) = 𝐾𝑑 + 𝐾𝑑 (π‘₯ βˆ’ π‘₯)
- π‘₯ = average age in the data set
(1)
(2)
- 𝐾𝑑 and 𝐾𝑑 are time series
...

(1) (2)
- 𝐸[𝑍𝑑 𝑍𝑑 ] = 𝜌, βˆ’1 ≀ 𝜌 ≀ 1
(𝑖) (𝑗)

- 𝐸 [𝑍𝑑 𝑍𝑒 ] = 0, π‘“π‘œπ‘Ÿ 𝑑 β‰  𝑒, 𝑖 = 1,2; 𝑗 = 1,2
- Advantages: fewer parameters and less parameter uncertainty
- Disadvantage: fit to population is sometimes worse
c
...
𝑠π‘₯2 is the variance of age

-

Let π‘š = π‘₯π‘šπ‘Žπ‘₯ βˆ’ π‘₯π‘šπ‘–π‘›, then

-

range in the data set
...
(ARIMA time series)
Advantages: includes a cohort effect and a quadratic age difference term
Title: mortality improvement models additional
Description: This note allows master's students to learn additional mortality improvement models representing multiple models. It is as straightforward as possible.