Stochastic Dominance with Ordinal Variables: Conditions and a Test
AbstractA re-emerging literature on robustness in multidimensional welfare and poverty comparisons has revived interest in multidimensional stochastic dominance. Considering the widespread use of ordinal variables in wellbeing measurement, and particularly in composite indices, I derive multivariate stochastic dominance conditions for ordinal variables. These are the analogues of the conditions for continuous variables (e.g., Bawa, 1975, and Atkinson and Bourguignon, 1982). The article also derives mixed-order-of-dominance conditions for any type of variable. Then I propose an extension of Anderson's nonparametric test in order to test these conditions for ordinal variables. In addition, I propose the use of vectors and matrices of positions in order to handle multivariate, multinomial distributions. An empirical application to multidimensional wellbeing in Peru illustrates these tests.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Taylor & Francis Journals in its journal Econometric Reviews.
Volume (Year): 32 (2013)
Issue (Month): 1 (January)
Contact details of provider:
Web page: http://www.tandfonline.com/LECR20
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Chrysanthi Hatzimasoura & Christopher J. Bennett, 2011. "Poverty Measurement with Ordinal Data," Working Papers 2011-14, The George Washington University, Institute for International Economic Policy.
- Gaston Yalonetzky, 2012. "Poverty measurement with ordinal variables: A generalization of a recent contribution," Working Papers 246, ECINEQ, Society for the Study of Economic Inequality.
- Gaston Yalonetzky, 2011. "Conditions for the Most Robust Poverty Comparisons Using the Alkire-Foster Family of Measures," OPHI Working Papers ophiwp044b, Queen Elizabeth House, University of Oxford.
- James Foster & Sabina Alkire, 2011.
"Understandings and Misunderstandings of Multidimensional Poverty Measurement,"
2011-18, The George Washington University, Institute for International Economic Policy.
- Sabina Alkire & James Foster, 2011. "Understandings and misunderstandings of multidimensional poverty measurement," Journal of Economic Inequality, Springer, vol. 9(2), pages 289-314, June.
- Sabina Alkire and James Foster, 2011. "Understandings and Misunderstandings of Multidimensional Poverty Measurement," OPHI Working Papers ophiwp043, Queen Elizabeth House, University of Oxford.
- Andrew M. Jones; Nigel Rice, Silvana Robone; & Nigel Rice; & Silvana Robone:, 2012. "A comparison of parametric and non-parametric adjustments using vignettes for self-reported data," Health, Econometrics and Data Group (HEDG) Working Papers 12/10, HEDG, c/o Department of Economics, University of York.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If references are entirely missing, you can add them using this form.