Multivariate Discrete First Order Stochastic Dominance

TY - UNPB

T1 - Multivariate Discrete First Order Stochastic Dominance

AU - Tarp, Finn

AU - Østerdal, Lars Peter

N1 - JEL Classification: D63, I32, O15

PY - 2007

Y1 - 2007

N2 - This paper characterizes the principle of first order stochastic dominance in a multivariate discrete setting. We show that a distribution  f first order stochastic dominates distribution g if and only if  f can be obtained from g by iteratively shifting density from one outcome to another that is better. For the bivariate case, we develop the theoretical basis for an algorithmic dominance test that is easy to implement

AB - This paper characterizes the principle of first order stochastic dominance in a multivariate discrete setting. We show that a distribution  f first order stochastic dominates distribution g if and only if  f can be obtained from g by iteratively shifting density from one outcome to another that is better. For the bivariate case, we develop the theoretical basis for an algorithmic dominance test that is easy to implement

KW - Faculty of Social Sciences

KW - multidimensional first degree distributional dominance

KW - robust poverty gap dominance

KW - majorization

KW - generalized equivalence result

M3 - Working paper

BT - Multivariate Discrete First Order Stochastic Dominance

PB - Department of Economics, University of Copenhagen

ER -