Testing for Bivariate Stochastic Dominance Using Inequality Restrictions

In this paper, we propose of a test of bivariate stochastic dominance using a generalized framework for testing inequality constraints. Unlike existing tests, this test has the advantage of utilizing the covariance structure of the estimates of the joint distribution functions. The performance of our proposed test is examined by way of a Monte Carlo experiment. We also consider an empirical example which utilizes household survey data on income and health status.

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Year of publication:	2011-07
Authors:	Stengos, Thanasis ; Thompson, Brennan S.
Institutions:	Rimini Centre for Economic Analysis (RCEA)
Subject:	Stochastic dominance \| inequality restrictions \| multidimensional welfare

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Extent:	application/pdf
Series:	Working Paper Series.
Type of publication:	Book / Working Paper
Language:	English
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10009142660