Mortality Projection using Linear and Bilinear Models
<Mortality Projection using Linear and Bilinear Models>
Abstract
In this paper, we compare two types of stochastic mortality forecasting models,
log-bilinear and log-linear, for data from six different countries. With calculating
associated statistics (such as Pearson, Deviance, AIC, and BIC) and comparing the
horizontal mortality projections, we demonstrate the necessity of cohort parame-
ters and the validity and advantages of employing a log-linear model for mortality
forecasting. In doing so, we conclude that the log-linear model provides a viable
alternative to log-bilinear model in a wider range of applications.