Testing For Restricted Stochastic Dominances: Some Further Results
AbstractExtensions are presented to the results of Davidson and Duclos (2007), whereby the null hypothesis of restricted stochastic non dominance can be tested by both asymptotic and bootstrap tests, the latter having considerably better properties as regards both size and power. In this paper, the methodology is extended to tests of higherorder stochastic dominance. It is seen that, unlike the first-order case, a numerical nonlinear optimisation problem has to be solved in order to construct the bootstrap DGP. Conditions are provided for a solution to exist for this problem, and efficient numerical algorithms are laid out. The empirically important case in which the samples to be compared are correlated is also treated, both for first-order and for higher-order dominance. For all of these extensions, the bootstrap algorithm is presented. Simulation experiments show that the bootstrap tests perform considerably
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 InfoPaper provided by McGill University, Department of Economics in its series Departmental Working Papers with number 2007-15.
Length: 27 pages
Date of creation: Apr 2007
Date of revision:
Other versions of this item:
- Russell Davidson, 2009. "Testing for Restricted Stochastic Dominance: Some Further Results," Review of Economic Analysis, Rimini Centre for Economic Analysis, vol. 1(1), pages 34-59, September.
- Russell Davidson, 2009. "Testing for restricted stochastic dominance: some further results," Working Papers halshs-00443556, HAL.
- C10 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - General
- C12 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Hypothesis Testing: General
- C15 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Statistical Simulation Methods: General
- I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Yélé Maweki Batana & Jean-Yves Duclos, 2010. "Comparing Multidimensional Poverty with Qualitative Indicators of Well-Being," Cahiers de recherche 1004, CIRPEE.
- Thanasis Stengos & Brennan S. Thompson, 2011.
"Testing for Bivariate Stochastic Dominance Using Inequality Restrictions,"
1107, University of Guelph, Department of Economics and Finance.
- Stengos, Thanasis & Thompson, Brennan S., 2012. "Testing for bivariate stochastic dominance using inequality restrictions," Economics Letters, Elsevier, vol. 115(1), pages 60-62.
- Thanasis Stengos & Brennan S. Thompson, 2011. "Testing for Bivariate Stochastic Dominance Using Inequality Restrictions," Working Paper Series 32_11, The Rimini Centre for Economic Analysis.
- D. Van De Gaer & J. Vandenbossche & J. L. Figueroa, 2011.
"Children’s health opportunities and project evaluation: Mexico’s Oportunidades program,"
Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium
11/749, Ghent University, Faculty of Economics and Business Administration.
- VAN DE GAER, Dirk & VANDENBOSSCHE, Joost & FIGUEROA, José Luis, 2012. "Children’s health opportunities and project evaluation: Mexico’s Oportunidades program," CORE Discussion Papers 2012015, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Van de gaer, Dirk & Vandenbossche, Joost & Figueroa, Jose Luis, 2013. "Children's health opportunities and project evaluation : Mexico's Oportunidades program," Policy Research Working Paper Series 6345, The World Bank.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Shama Rangwala) The email address of this maintainer does not seem to be valid anymore. Please ask Shama Rangwala to update the entry or send us the correct address.
If references are entirely missing, you can add them using this form.