Very simple case consideration for easy understanding
t is time-course. e is Napier’s constant. E[] is the expectation operant. r(t) is the risk-free rate. Ci is a single cash of the cashflow the treatee receives.
Fig 1-1. Basic idea.
Fig 1-2. Considering the cohort.
Implications
On the cohort
You should be aware of who are going to be averaged with. What kind of people are you preferred to be with?
Fig 2. Be averaged with whom?
On retirement
People are to be recommended that they keep earning as long as possible to get the better medical charge support.
Fig 3. Comparison of scenarios. Which would you like to invest in to help?
Further learning – The Indirect Effect
Not only the direct effect of the capability-depriving disease to earn, the indirect effect should be considered. Typically, the wife-lost husband lose the capability.
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