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Stochastic Dominance

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Author Info
Russell Davidson ()

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Abstract

The concept of stochastic dominance is defined, and its relation to welfare, poverty, and income inequality explained. A brief discussion is provided of how statistical inference may be performed for hypotheses relating to stochastic dominance.

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Paper provided by McGill University, Department of Economics in its series Departmental Working Papers with number 2006-19.

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Length: 10 pages
Date of creation: Sep 2006
Date of revision:
Handle: RePEc:mcl:mclwop:2006-19

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Find related papers by JEL classification:
I30 - Health, Education, and Welfare - - Welfare and Poverty - - - General
I32 - Health, Education, and Welfare - - Welfare and Poverty - - - Measurement and Analysis of Poverty

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. repec:cup:etheor:v:10:y:1994:i:5:p:849-66 is not listed on IDEAS
  2. Rongve, Ian, 1997. "Statistical Inference for Poverty Indices with Fixed Poverty Lines," Applied Economics, Taylor and Francis Journals, vol. 29(3), pages 387-92, March. [Downloadable!] (restricted)
  3. Anderson, Gordon, 1996. "Nonparametric Tests of Stochastic Dominance in Income Distributions," Econometrica, Econometric Society, vol. 64(5), pages 1183-93, September. [Downloadable!] (restricted)
  4. Jenkins, Stephen P & Lambert, Peter J, 1997. "Three 'I's of Poverty Curves, with an Analysis of UK Poverty Trends," Oxford Economic Papers, Oxford University Press, vol. 49(3), pages 317-27, July. [Downloadable!] (restricted)
  5. Kaur, Amarjot & Prakasa Rao, B.L.S. & Singh, Harshinder, 1994. "Testing for Second-Order Stochastic Dominance of Two Distributions," Econometric Theory, Cambridge University Press, vol. 10(05), pages 849-866, December. [Downloadable!]
  6. Bishop, John A & Chow, K Victor & Zheng, Buhong, 1995. "Statistical Inference and Decomposable Poverty Measures," Bulletin of Economic Research, Blackwell Publishing, vol. 47(4), pages 329-40, October.
  7. Wolak, Frank A., 1989. "Testing inequality constraints in linear econometric models," Journal of Econometrics, Elsevier, vol. 41(2), pages 205-235, June. [Downloadable!] (restricted)
  8. Russell Davidson & Jean-Yves Duclos, 2000. "Statistical Inference for Stochastic Dominance and for the Measurement of Poverty and Inequality," Econometrica, Econometric Society, vol. 68(6), pages 1435-1464, November.
    Other versions:
  9. Atkinson, A B, 1987. "On the Measurement of Poverty," Econometrica, Econometric Society, vol. 55(4), pages 749-64, July. [Downloadable!] (restricted)
  10. Kakwani, Nanak, 1993. "Statistical Inference in the Measurement of Poverty," The Review of Economics and Statistics, MIT Press, vol. 75(4), pages 632-39, November. [Downloadable!] (restricted)
  11. Shorrocks, Anthony F, 1983. "Ranking Income Distributions," Economica, London School of Economics and Political Science, vol. 50(197), pages 3-17, February. [Downloadable!] (restricted)
  12. Beach, Charles M & Richmond, James, 1985. "Joint Confidence Intervals for Income Shares and Lorenz Curves," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 26(2), pages 439-50, June. [Downloadable!] (restricted)
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(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Michael C. Burda & Bernd Fitzenberger & Alexander Lembcke & Thorsten Vogel, 2008. "Unionization, Stochastic Dominance, and Compression of the Wage Distribution: Evidence from Germany," SFB 649 Discussion Papers SFB649DP2008-041, Sonderforschungsbereich 649, Humboldt University, Berlin, Germany. [Downloadable!]
  2. Abhay Abhyankar & Keng-Yu Ho & Huainan Zhao, 2005. "Long-run post-merger stock performance of UK acquiring firms: a stochastic dominance perspective," Applied Financial Economics, Taylor and Francis Journals, vol. 15(10), pages 679-690, June. [Downloadable!] (restricted)
  3. Liu, Xuanli & Miller, Gay & McNamara, Paul, 2003. "Do Antibiotics Reduce Production Risk For U.S. Pork Producers?," 2003 Annual meeting, July 27-30, Montreal, Canada 22026, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
  4. Sami Bibi, 2005. "When is Economic Growth Pro-Poor? Evidence from Tunisia," Cahiers de recherche 0522, CIRPEE. [Downloadable!]
  5. Benoit Tarroux, 2006. "Are Equalization Payments Making Canadians Better Off? A Two-Dimensional Dominance Answer," IDEP Working Papers 0608, Institut d'economie publique (IDEP), Marseille, France, revised 15 Nov 2006. [Downloadable!]
  6. Sami Bibi & Jean-Yves Duclos, 2003. "Equity and Policy Effectiveness with Imperfect Targeting," Cahiers de recherche 0335, CIRPEE. [Downloadable!]
    Other versions:
  7. Brian Nolan & Bertrand Maitre, 2000. "A Comparative Perspective on Trends in Income Inequality in Ireland," The Economic and Social Review, Economic and Social Studies, vol. 31(4), pages 329-350. [Downloadable!]
  8. Dominic Gasbarro & Wing-Keung Wong & J. Kenton Zumwalt, 2007. "Stochastic Dominance Analysis of iShares," European Journal of Finance, Taylor and Francis Journals, vol. 13(1), pages 89-101, January. [Downloadable!] (restricted)
    Other versions:
  9. Sami Bibi, 2006. "Growth with Equity is Better for the Poor," Cahiers de recherche 0640, CIRPEE. [Downloadable!]
  10. Mireille Bardos, 2007. "What is at stake in the construction and use of credit scores?," Computational Economics, Springer, vol. 29(2), pages 159-172, March. [Downloadable!] (restricted)
  11. Oliver Linton & Kyungchul Song & Yoon-Jae Whang, 2008. "Bootstrap tests of stochastic dominance with asymptotic similarity on the boundary," CeMMAP working papers CWP08/08, Centre for Microdata Methods and Practice, Institute for Fiscal Studies. [Downloadable!]
    Other versions:
  12. Boèvi Kouglo Lawson Body & Kokou Baninganti & Etsri Homevoh & Etse Adjo Lamadokou, 2007. "Analyse comparative de l'état de pauvreté et d'inégalité au Togo: une approche multidimensionnelle basée sur l'indice de richesse/Comparative Analysis of Poverty and Inequality in Togo: a Multidi," Cahiers de recherche PMMA 2007-10, PEP-PMMA. [Downloadable!]
  13. Jean-Yves Duclos & Paul Makdissi, 2000. "Restricted and Unrestricted Dominance Welfare, Inequality and Povery Orderings," Cahiers de recherche 00-01, Departement d'Economique de la Faculte d'administration à l'Universite de Sherbrooke. [Downloadable!]
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