Application of the Lee-Carter Model to Uruguay

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Guillermo Emilio Magnou Romero
María Cecilia Salles Fagundez

Resumen

The Lee-Carter Model is one of the most popular methodologies for forecasting mortality rates. The model is widely known to be simple and has been used very successfully in U.S. and several countries. This model uses principal component analysis to decompose the age-time matrix of mortality rates into a bilinear combination of age and period parameters, with the latter being treated as time series to produce mortality projections. This paper describes the application of the Lee-Carter model to age-specific death rates by gender in Uruguay. These rates are available for the period that goes from 1974 to 2020. We concluded by forecasting the mortality rates for the time period that goes from 2021 to 2050 in order to project life expectancy at birth using life tables.

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Biografía del autor/a

Guillermo Emilio Magnou Romero, Universidad ORT Uruguay

Licenciado en Estadistica opcion Economia, Universidad de la Republica.

Master en Ingenieria Matematica, Universidad de la Republica.

Actualmente Gerente de Gestion Integral de Riesgos y Cumplimiento en Integracion AFAP empresa de fondos de inversion en Uruguay y docente de la Universidad ORT Uruguay.