Tag: mortality
Abstract We investigate whether heterogeneity can explain the differences in mortality between the United States and a more homogeneous country, i.e. Japan. The background of the analysis is the growing gap between life-expectancy in the United States and the world record leader since the 1980s. This development is mirrored in the decelerated improvements made against…
Abstract Using the Lee-Carter mortality model, we quantify aggregate mortality risk, the risk that annuitants might live longer than predicted by the model. We calculate that a markup of 4.3 percent on an annuity premium, or else shareholders’ capital equal to 4.3 percent of the expected present value of annuity payments, would reduce the probability…
