Publication:
The Wilkie model: A comparison of the discrete-time with the continuous-time

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2018

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American Institute of Physics Inc.

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Abstract

The Wilkie model is a stochastic asset model, developed by A.D Wilkie in 1984 with the purpose to explore the behavior of investment factors of insurer within the United Kingdom. The Wilkie model was considered as a discrete-time horizon model and we then reviewed the continuous time case which was initially introduced by Terence Chan in 1998. We comprehensively explain all four sub models in the Wilkie model and make comparison with the original Wilkie model in discrete time. Prior to that, we also discuss the famous Ornstein-Uhlenbeck process which will be used to develop the continuous-time Wilkie model. � 2018 Author(s).

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Ornstein-Uhlenbeck process, Stochastic asset model, Wilkie model

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