Lee-Carter Model

The Lee-Carter model is a stochastic framework for modeling and forecasting age-specific mortality rates, introduced by Ronald Lee and Lawrence Carter in their landmark 1992 paper. It decomposes the logarithm of age-specific death rates into an age pattern of mortality, a time-varying index of mortality level, and an age-specific sensitivity of that index, then forecasts the time index using ARIMA time-series methods to generate probabilistic mortality projections.