Re: Market Estimate of Aging Progress

From: GBurch1@aol.com
Date: Sat Aug 23 1997 - 05:49:08 MDT


In a message dated 97-08-16 07:58:00 EDT, Robin Hanson forwards an abstract
of a paper by Charles Mullin:

> The paper develops methods to
> identify and estimate the mortality implicit in the market
> prices of such claims by identifying survival functions from
> prices of contracts that differ in their duration. Utilizing
> these methods, we provide estimates using cohort-specific
> prices of US term life insurance contracts in 1990-96 for
> individuals aged 60 in each calendar year. Our main finding
> is that the mortality patterns inferred from these prices
> indicate a continued decline in cohort-specific mortality
> at rates equal to or greater than recent historical trends;
> about a 5 percent reduction in relative terms in the
> mortality hazards per successive cohort.

Any idea what this fellow means by "cohort"? I've always understood it to
mean the group of people sharing a birth-year. Does this mean 5% per year?
 I'd like to believe that it does, but this seems very optimistic.

Greg Burch <Gburch1@aol.com>----<burchg@liddellsapp.com>
   Attorney ::: Director, Extropy Institute ::: Wilderness Guide
http://users.aol.com/gburch1 -or- http://members.aol.com/gburch1
           "Good ideas are not adopted automatically. They must
              be driven into practice with courageous impatience."
                      -- Admiral Hyman G. Rickover



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