Recursions for the Individual Risk Model

Authors
Publication date 2006
Journal Acta Mathematicae Applicatae Sinica. English series
Volume | Issue number 22 | 4
Pages (from-to) 543-564
Number of pages 22
Organisations
  • Faculty of Economics and Business (FEB) - Amsterdam School of Economics Research Institute (ASE-RI)
Abstract In the actuarial literature, several exact and approximative recursive methods have been proposed for calculating the distribution of a sum of mutually independent compound Bernoulli distributed random variables. In this paper, we give an overview of these methods. We compare their performance with the straightforward convolution technique by counting the number of dot operations involved in each method. It turns out that in many practicle situations, the recursive methods outperform the convolution method.
Document type Article
Language English
Published at https://doi.org/10.1007/s10255-006-0329-0
Permalink to this page
Back