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The Lee–Carter model is a numerical algorithm used in mortality forecasting and life expectancy forecasting. The input to the model is a matrix of age specific mortality rates ordered monotonically by time, usually with ages in columns and years in rows.

The Lee–Carter model is a numerical algorithm used in mortality forecasting and life expectancy forecasting. The input to the model is a matrix of age specific mortality rates ordered monotonically by time, usually with ages in columns and years in rows.

Definition. Mortality models approximate mortality patterns or dynamics over age and time. An age pattern of mortality can be any mathematical function of mortality, such as rates, probabilities, survivorship, or death distributions.

Definition. Mortality models approximate mortality patterns or dynamics over age and time. An age pattern of mortality can be any mathematical function of mortality, such as rates, probabilities, survivorship, or death distributions.

The common factor extracted by the Lee–Carter model is defined as Mortality Index, and the factor loadings capture the relationship between the age variables and the mortality index. Since there is only one factor in the Lee–Carter model, Booth et al., 2002, Renshaw and Haberman, 2003 and Yang et al.

Abstract. A new Lee–Carter model parameterization is introduced with two advantages. First, the Lee–Carter parameters are normalized such that they have a direct and intuitive interpretation, comparable across populations. Second, the model is stated in terms of the “needed-exposure” (NE).