A Nonparametric Test of $m$th-degree Inverse Stochastic Dominance
Econometrics
2023-07-18 v3
Abstract
This paper proposes a nonparametric test for th-degree inverse stochastic dominance which is a powerful tool for ranking distribution functions according to social welfare. We construct the test based on empirical process theory. The test is shown to be asymptotically size controlled and consistent. The good finite sample properties of the test are illustrated via Monte Carlo simulations. We apply our test to the inequality growth in the United Kingdom from 1995 to 2010.
Keywords
Cite
@article{arxiv.2306.12271,
title = {A Nonparametric Test of $m$th-degree Inverse Stochastic Dominance},
author = {Hongyi Jiang and Zhenting Sun and Shiyun Hu},
journal= {arXiv preprint arXiv:2306.12271},
year = {2023}
}