Table 4 Table of parameters.
Category | Parameter |
|---|---|
Sex | Men and Women |
Age | 60–95 (increment of 5) |
Loan rate \({{\rm{r}}}_{L}\) | 1.86%, 2.0775%, 2.295%, 2.5125%, 2.73% |
Initial value of house \(H\left(0\right)\) | NT$6 million, NT$8 million, NT$10 million |
Rental rate \(\delta\) | 1.5% |
Risk-free interest rate \(r\) | 1.04% |
Rate of initial premium \({\pi }_{0}\) | 2% |
Rate of renewal premium \({\pi }_{m}\) | 1.25% |
The rate difference between the loan rate and the risk-free interest rate \({\pi }_{r}\) | \({\pi }_{r}={r}_{L}-r\) |
Fluctuation of the value of the house \({\sigma }_{H}\) | 10% |
Type of occupation before retirement | Educator, public servant, military personnel, and laborer |
