Variables/Parameters | Description | Units | Values |
---|---|---|---|
It | Investment costs | CNY | 60,000,000 |
P | Price of elderly care services | CNY/year | 36,000 |
T | Whole lifetime of the ECSPs | year | 30 |
Ns | Construction or Investment scale | bed | 300 |
Scs | Construction subsidy | CNY/bed | 12,000 |
Sps | Operating subsidy | CNY/person/year | 4800 |
ρ | Construction subsidy adjustment coefficient | _ | 0.90 |
θ | Operating subsidy adjustment coefficient | _ | 0.90 |
μ | Premium cost coefficient | _ | 1.20 |
r | Risk-free interest rate | _ | 0.10 |
α | Risk-neutral drift rate | _ | 0.005 |
σ | Risk-neutral volatility rate | _ | 0.12 |