# Hierarchical Loss Reserving with Stan

[This article was first published on

Want to share your content on R-bloggers? click here if you have a blog, or here if you don't.

I continue with the growth curve model for loss reserving from last week’s post. Today, following the ideas of James Guszcza [2] I will add an hierarchical component to the model, by treating the ultimate loss cost of an accident year as a random effect. Initially, I will use the nlme R package, just as James did in his paper, and then move on to Stan/RStan [6], which will allow me to estimate the full distribution of future claims payments.
**R on mages' blog**, and kindly contributed to R-bloggers]. (You can report issue about the content on this page here)Want to share your content on R-bloggers? click here if you have a blog, or here if you don't.

To

**leave a comment**for the author, please follow the link and comment on their blog:**R on mages' blog**.R-bloggers.com offers

**daily e-mail updates**about R news and tutorials about learning R and many other topics. Click here if you're looking to post or find an R/data-science job.

Want to share your content on R-bloggers? click here if you have a blog, or here if you don't.