Pricing unemployment insurance using burr xii mixture distributions and C.A.P.M with application to USA data
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Date
2016-08Author
Mutwiri, Martin K.
Type
ThesisLanguage
enMetadata
Show full item recordAbstract
The objective of this research is to consider varying unemployment duration in the pricing
of unemployment insurance with application to USA data. The study assumes that unemployment
duration follows Burr XII mixture distribution while the discount rate to use in the
pricing of the scheme will be determined by fitting market data into the capital asset pricing
model. The Burr XII mixture distribution has been used to model unemployment duration
in order to allow for heterogeneity in the unemployment duration of the covered employees.
The program will be administered by the government to cover her working citizenry so that in the event of an involuntarily job loss, one may receive unemployment benefits to help them pay their recurrence bills before they secure another job.The results yield a mean unemployment duration of approximately 16 weeks and premium contribution rate of 5.10% of the taxable wage base per month for a benefit of 45% of the taxable wage base per month, payable on weekly basis during spells of unemployment.
Publisher
University of Nairobi
Description
A dissertation submitted to the graduate school for partial requirements for the award of Master of science in Actuarial Science
Rights
Attribution-NonCommercial-NoDerivs 3.0 United StatesUsage Rights
http://creativecommons.org/licenses/by-nc-nd/3.0/us/Collections
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