Flexible transition timing in discrete-time multistate life tables using Markov chains with rewards

Daniel C. Schneider, Mikko Myrskylä and Alyson van Raalte

Population Studies, 2024, vol. 78, issue 3, 413-427

Abstract: Discrete-time multistate life tables are attractive because they are easier to understand and apply in comparison with their continuous-time counterparts. While such models are based on a discrete time grid, it is often useful to calculate derived magnitudes (e.g. state occupation times), under assumptions which posit that transitions take place at other times, such as mid-period. Unfortunately, currently available models allow very few choices about transition timing. We propose the use of Markov chains with rewards as a general way of incorporating information on the timing of transitions into the model. We illustrate the usefulness of rewards-based multistate life tables by estimating working life expectancies using different retirement transition timings. We also demonstrate that for the single-state case, the rewards approach matches traditional life-table methods exactly. Finally, we provide code to replicate all results from the paper plus R and Stata packages for general use of the method proposed.

Date: 2024
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DOI: 10.1080/00324728.2023.2176535

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Population Studies is currently edited by John Simons, Francesco Billari, James J. Brown, John Cleland, Andrew Foster, John McDonald, Tom Moultrie, Mikko Myrsklä, Alice Reid, Wendy Sigle-Rushton, Ronald Skeldon and Frans Willekens

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