Tests for the Second Order Stochastic Dominance Based on L -Statistics

Bibliographic Data

ID19418282
AuthorsJosé R Berrendero (0000-0003-0728-7748, Universidad Autónoma de Madrid), Javier Cárcamo (0000-0002-3978-4266, Universidad Autónoma de Madrid)
Year2011
Volume29
Issue2
Pages260-270
Publication date2011-04-01
Open AccessNo
TypeARTICLE
VenueJournal of Business and Economic Statistics (JOURNAL)
Journal identifiersISSN: 0735-0015 • E-ISSN: 1537-2707
PublisherInforma UK Limited (PUBLISHER • GB)
DOI10.1198/jbes.2010.07224
OpenAlexW1963926235
LanguageEN
Citations received2
References cited16

We use some characterizations of convex and concave-type orders to define discrepancy measures useful in two testing problems involving stochastic dominance assumptions. The results are connected with the mean value of the order statistics and have a clear economic interpretation in terms of the expected cumulative resources of the poorest (or richest) in random samples. Our approach mainly consists of comparing the estimated means in ordered samples of the involved populations. The test statistics we derive are functions of L-statistics and are generated through estimators of the mean order statistics. We illustrate some properties of the procedures with simulation studies and an empirical example

Econometrics · Estimator · Order statistic · Statistics · Stochastic dominance · Stochastic ordering · Summary statistics · Advanced Statistical Methods and Models · Income, Poverty, and Inequality · Mathematics · Statistical Methods and Inference

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