Testing for stochastic dominance among additive, multivariate welfare functions with discrete variable

Working paper

A flourishing literature on robustness in multidimensional welfare and poverty comparisons has aroused the interest on multidimensional stochastic dominance. By generalizing the dominance conditions of Atkinson and Bourguignon (1982) this paper offers complete conditions, alternative to those proposed by Duclos et al. (2006a,b). We also show how to test these conditions for discrete variables extending the non-parametric test by Anderson (1996) to multiple dimensions. An empirical application illustrates these tests.

Authors: Yalonetzky, G

• Publication status: Published
• Peer review status: Reviewed (other)
• Publisher: Oxford Poverty & Human Development Initiative (OPHI) Publisher's website
• Series: OPHI research in progress
• Publication date: 2009-01-01
• Paper number: 9a
• Language: English
• Keywords: nonparametric tests; ophi; Multidimensional welfare comparisons; stochastic dominance