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A general-purpose method for two-group randomization tests

Author

Listed:
  • Johannes Kaiser

    (Laboratory for Experimental Economics, University of Bonn)

  • Michael G. Lacy

    (Colorado State University)

Abstract

We outline a novel approach to calculate exact p-levels for two-sample randomization tests. The approach closely resembles permute in its applications, with the main difference being that the results are approximated only if the execution time needed to calculate exact p-levels would exceed a specified maximum. We demonstrate its use by deriving p-levels for the significance of Somers’ D, the coefficient of variation, the difference in means and in medians, and the difference in two multinomials. Copyright 2009 by StataCorp LP.

Suggested Citation

  • Johannes Kaiser & Michael G. Lacy, 2009. "A general-purpose method for two-group randomization tests," Stata Journal, StataCorp LP, vol. 9(1), pages 70-85, March.
    • Handle: RePEc:tsj:stataj:v:9:y:2009:i:1:p:70-85
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    References listed on IDEAS

    as
    1. Edward Cureton, 1956. "Rank-biserial correlation," Psychometrika, Springer;The Psychometric Society, vol. 21(3), pages 287-290, September.
    2. Jane F. Gentleman, 1975. "Generation of All NCR Combinations by Simulating Nested Fortran Do Loops," Journal of the Royal Statistical Society Series C, Royal Statistical Society, vol. 24(3), pages 374-376, November.
    3. Roger Newson, 2002. "Parameters behind "nonparametric" statistics: Kendall's tau,Somers' D and median differences," Stata Journal, StataCorp LP, vol. 2(1), pages 45-64, February.
    4. Johannes Kaiser, 2007. "An exact and a Monte Carlo proposal to the Fisher–Pitman permutation tests for paired replicates and for independent samples," Stata Journal, StataCorp LP, vol. 7(3), pages 402-412, September.
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    Cited by:

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    2. Daniele Nosenzo & Theo Offerman & Martin Sefton & Ailko van der Veen, 2016. "Discretionary Sanctions and Rewards in the Repeated Inspection Game," Management Science, INFORMS, vol. 62(2), pages 502-517, February.
    3. Cheung, Stephen L. & Hedegaard, Morten & Palan, Stefan, 2014. "To see is to believe: Common expectations in experimental asset markets," European Economic Review, Elsevier, vol. 66(C), pages 84-96.
    4. Felix Koelle & Tom Lane & Daniele Nosenzo & Chris Starmer, 2017. "Nudging the electorate: what works and why?," Discussion Papers 2017-16, The Centre for Decision Research and Experimental Economics, School of Economics, University of Nottingham.

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