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Record W3122996412 · doi:10.48550/arxiv.1811.09932

The implied longevity curve: How long does the market think you are\n going to live?

2018· preprint· en· W3122996412 on OpenAlexaff
Moshe A. Milevsky, Thomas S. Salisbury, Alexander Chigodaev

Bibliographic record

VenuearXiv (Cornell University) · 2018
Typepreprint
Languageen
FieldSocial Sciences
TopicInsurance, Mortality, Demography, Risk Management
Canadian institutionsYork University
Fundersnot available
KeywordsLongevityLife expectancyImplied volatilityEconomicsLongevity riskYield curveLife annuityVolatility (finance)Actuarial scienceEconometricsFinancial economicsDemographyInterest ratePopulationMedicineFinancePensionGerontology

Abstract

fetched live from OpenAlex

We use life annuity prices to extract information about human longevity using\na framework that links the term structure of mortality and interest rates. We\ninvert the model and perform nonlinear least squares to obtain implied\nlongevity forecasts. Methodologically, we assume a Cox-Ingersoll-Ross (CIR)\nmodel for the underlying yield curve, and for mortality, a Gompertz-Makeham\n(GM) law that varies with the year of annuity purchase. Our main result is that\nover the last decade markets implied an improvement in longevity of of 6-7\nweeks per year for males and 1-3 weeks for females. In the year 2004 market\nprices implied a $40.1\\%$ probability of survival to the age 90 for a 75-year\nold male ($51.2\\%$ for a female) annuitant. By the year 2013 the implied\nsurvival probability had increased to $46.1\\%$ (and $53.1\\%$). The\ncorresponding implied life expectancy has increased (at the age of 75) from\n13.09 years for males (15.08 years for females) to 14.28 years (and 15.61\nyears.) Although these values are implied directly from markets, they are\nconsistent with demographic projections. Similar to implied volatility in\noption pricing, we believe that our implied survival probabilities (ISP) and\nimplied life expectancy (ILE) are relevant for the financial management of\nassets post-retirement and very important for the optimal timing and allocation\nto annuities; procrastinators are swimming against an uncertain but rather\nstrong longevity trend.\n

Fetched live from OpenAlex and de-inverted. Abstracts are not stored in this database: the inverted indexes are 8.6 GB of the frame’s 9.3 GB of text, and the host has 13 GB free.

How this classification was reachedexpand

Full frame distilled prediction

Teacher imitation

Not calibrated prevalence, not ground truth. Human validation pending. Learned from the 10,348 direct Codex labels and 10,348 direct Gemma labels. Candidate is the union of thresholded teacher heads; consensus is their intersection. These outputs are machine_predicted_unvalidated and are not human labels or direct frontier model labels.

metaresearch head score (Codex)0.004
metaresearch head score (Gemma)0.000
Version: codex-gemma-dda1882f352aValidation status: machine_predicted_unvalidated
Candidate categoriesMeta-epidemiology (narrow), Science and technology studies
Consensus categoriesnone
DomainCandidate signal: none · Consensus signal: none
Study designCandidate signal: Observational · Consensus signal: Observational
GenreCandidate signal: Empirical · Consensus signal: Empirical
Teacher disagreement score0.056
Threshold uncertainty score1.000

Codex and Gemma teacher scores by category

CategoryCodexGemma
Metaresearch0.0040.000
Meta-epidemiology (narrow)0.0010.000
Meta-epidemiology (broad)0.0000.001
Bibliometrics0.0000.001
Science and technology studies0.0030.002
Scholarly communication0.0010.000
Open science0.0040.003
Research integrity0.0000.001
Insufficient payload (model declined to judge)0.0000.000

Machine scores (provisional)

The two teacher heads of the student model, read on this work. A score orders the frame for review; it never asserts a category, and the validation status ships verbatim with every row.

Baseline scores from an immature model (maturity gate not passed, 7 training rounds). Scores rank; they never assert a category.

Opus teacher head0.050
GPT teacher head0.226
Teacher spread0.176 · how far apart the two teachers sit on this one work
Validation statusscore_only:v0-immature-baseline · verbatim from the scoring run: score_only means the number may rank works, and no category label ships from it

Classification

machine, unvalidated

Machine predicted; a candidate call from one teacher head, not a consensus.

Study designObservational
Domainnot available
GenreEmpirical

How this classification was reached, model by model and score by score, is at the end of the page under "How this classification was reached".

Quick stats

Citations1
Published2018
Admission routes1
Has abstractyes

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