International welfare comparisons and nonparametric testing of multivariate stochastic dominance

@inproceedings{McCaig2005InternationalWC,
  title={International welfare comparisons and nonparametric testing of multivariate stochastic dominance},
  author={Brian McCaig and Adonis Yatchew},
  year={2005}
}
This paper outlines a class of statistical procedures that permit testing of a broad range of multi-dimensional stochastic dominance hypotheses and more generally, welfare hypotheses that rely upon multiple stochastic dominance conditions. We apply the procedures to data on income and leisure hours for individuals in Germany, the U.K., and the U.S. We find that no country first-order stochastically dominates the others in both dimensions for all years of comparison. Furthermore, while in… CONTINUE READING