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A nonparametric test of stochastic dominance in multivariate distributions

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  • Ian Crawford

    (University of Surrey and cemmap, Institute for Fiscal Studies)

Abstract

The literature on statistical test of stochastic dominance has thus far been concerned with univariate distributions. This paper presents nonparametric statistical tests for multivariate distributions. This allows a nonparametric treatment of multiple welfare indicators. These test are applied to a time series of cross-section datasets on household level total expenditure and non labour market time in the UK. This contrasts the welfare inferences which might be drawn from looking at univariate (marginal) distributions with those which consider the joint distribution.

Suggested Citation

  • Ian Crawford, 2005. "A nonparametric test of stochastic dominance in multivariate distributions," School of Economics Discussion Papers 1205, School of Economics, University of Surrey.
    • Handle: RePEc:sur:surrec:1205
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    File URL: https://repec.som.surrey.ac.uk/2005/DP12-05.pdf
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    References listed on IDEAS

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    8. Anderson, Gordon, 1996. "Nonparametric Tests of Stochastic Dominance in Income Distributions," Econometrica, Econometric Society, vol. 64(5), pages 1183-1193, September.
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    Citations

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    Cited by:

    1. Schumann, Keith D., 2011. "Semi-nonparametric test of second degree stochastic dominance with respect to a function," Journal of Econometrics, Elsevier, vol. 162(1), pages 71-78, May.
    2. Nicolas Gravel & Abhiroop Mukhopadhyay, 2010. "Is India better off today than 15 years ago? A robust multidimensional answer," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 8(2), pages 173-195, June.
    3. Arndt, Channing & Distante, Roberta & Hussain, M. Azhar & Østerdal, Lars Peter & Huong, Pham Lan & Ibraimo, Maimuna, 2012. "Ordinal Welfare Comparisons with Multiple Discrete Indicators: A First Order Dominance Approach and Application to Child Poverty," World Development, Elsevier, vol. 40(11), pages 2290-2301.
    4. Christoffer Sonne-Schmidt & Finn Tarp & Lars Peter Østerdal, 2013. "Ordinal Multidimensional Inequality," WIDER Working Paper Series wp-2013-097, World Institute for Development Economic Research (UNU-WIDER).
    5. M. Azhar Hussain & Nikolaj Siersbæk & Lars Peter Østerdal, 2020. "Multidimensional welfare comparisons of EU member states before, during, and after the financial crisis: a dominance approach," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 55(4), pages 645-686, December.
    6. Gaston Yalonetzky, 2013. "Stochastic Dominance with Ordinal Variables: Conditions and a Test," Econometric Reviews, Taylor & Francis Journals, vol. 32(1), pages 126-163, January.
    7. Sonne-Schmidt, Christoffer & Tarp, Finn & Peter, Lars, 2011. "Ordinal multidimensional inequality: theory and application to the 2x2 case," MPRA Paper 72838, University Library of Munich, Germany.
    8. Gaston Yalonetzky, 2014. "Conditions for the most robust multidimensional poverty comparisons using counting measures and ordinal variables," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 43(4), pages 773-807, December.
    9. Nicolas Gravel & Patrick Moyes, 2006. "Ethically Robust Comparisons of Distributions of Two Individual Attributes," IDEP Working Papers 0605, Institut d'economie publique (IDEP), Marseille, France, revised Aug 2006.
    10. Millimet Daniel L & Wang Le, 2006. "A Distributional Analysis of the Gender Earnings Gap in Urban China," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 5(1), pages 1-50, February.
    11. Sonne-Schmidt, Christoffer & Tarp, Finn & Østerdal, Lars Peter, 2013. "Ordinal Multidimensional Inequality," WIDER Working Paper Series 097, World Institute for Development Economic Research (UNU-WIDER).
    12. Nicolas Gravel & Patrick Moyes & Benoît Tarroux, 2009. "Robust International Comparisons of Distributions of Disposable Income and Regional Public Goods," Economica, London School of Economics and Political Science, vol. 76(303), pages 432-461, July.
    13. Christoffer Sonne-Schmidt & Finn Tarp & Lars Peter Østerdal, 2008. "Ordinal Comparison of Multidimensional Deprivation: theory and application," Discussion Papers 08-33, University of Copenhagen. Department of Economics.
    14. Gaston Yalonetzky, 2011. "Conditions for the Most Robust Poverty Comparisons Using the Alkire-Foster Family of Measures," OPHI Working Papers ophiwp044b, Queen Elizabeth House, University of Oxford.
    15. Christoffer Sonne-Schmidt & Finn Tarp & Lars Peter Østerdal, 2016. "Ordinal Bivariate Inequality: Concepts and Application to Child Deprivation in Mozambique," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 62(3), pages 559-573, September.
    16. Arndt, Channing & Distante, Roberta & Hussain, M. Azhar & Østerdal, Lars Peter & Huong, Pham Lan & Ibraimo, Maimuna, 2012. "Ordinal Welfare Comparisons with Multiple Discrete Indicators: A First Order Dominance Approach and Application to Child Poverty," World Development, Elsevier, vol. 40(11), pages 2290-2301.
    17. Brian McCaig & Adonis Yatchew, 2007. "International welfare comparisons and nonparametric testing of multivariate stochastic dominance," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 22(5), pages 951-969.

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    More about this item

    Keywords

    Social welfare; stochastic dominance; nonparametric statistical methods;
    All these keywords.

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • D30 - Microeconomics - - Distribution - - - General

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