Open Access Open Access  Restricted Access Subscription or Fee Access

Consistent Nonparametric Tests for Bivariate Stochastic Dominance with Applications to Labor Market Econometrics

Luciano A. Perez


In this paper, we develop fully consistent nonparametric tests for bivariate stochastic dominance, generalizing the weak convergence approach. We overcome known problems with multivariate Kolmogorov-Smirnov statistics using empirical processes theory and bootstrap techniques to obtain fully consistent non parametric tests for bivariate 1st and 2nd order stochastic dominance over several modularity classes of test functions. We introduce theorems showing the weak convergence of our test statistics to appropriate transformations of Brownian bridge processes and use this to obtain data depending p-values. We also make a bootstrap power assessment of the tests, showing them to be in line with top standards in the statistical literature. As we don’t assume absolute continuity our approach is useful even for discrete distributions. We finally apply our tests to construct bivariat e economic welfare rankings for Argentina in the aftermath of the 2001 crisis.


Stochastic dominance, multidimensional inequality, empirical processes, bootstrap, Kolmogorov-Smirnov statistics.

Full Text:


Disclaimer/Regarding indexing issue:

We have provided the online access of all issues and papers to the indexing agencies (as given on journal web site). It’s depend on indexing agencies when, how and what manner they can index or not. Hence, we like to inform that on the basis of earlier indexing, we can’t predict the today or future indexing policy of third party (i.e. indexing agencies) as they have right to discontinue any journal at any time without prior information to the journal. So, please neither sends any question nor expects any answer from us on the behalf of third party i.e. indexing agencies.Hence, we will not issue any certificate or letter for indexing issue. Our role is just to provide the online access to them. So we do properly this and one can visit indexing agencies website to get the authentic information.