Bootstrap Testing for restricted stochastic dominance of a pre-specified order between two distributions is interest in many areas economics. This paper develops new method improving the performance such tests that employ moment selection procedure: tilting empirical distribution procedure. We propose amount be chosen to maximize likelihood subject restrictions null hypothesis, which are contin...

We develop and implement a portfolio optimization method for building investment portfolios that dominate a given benchmark index in terms of third-degree stochastic dominance. Our approach relies on the properties of the semi-variance function, a re nement of an existing `superconvex' dominance condition and quadratic constrained programming. To reduce the computational burden in large-scale a...

Poverty is the most serious threat to natural resources and the environment and most of the poor are rural-based who engage in various agricultural activities. Land is a critical asset for the rural poor and lacking means to appropriately intensify agriculture which compels the poor to either overuse or misuse this natural resource base to meet basic needs. This study presents empirical relatio...

The paper looks at poverty and inequality across areas in Malawi. The focus is on both monetary (consumption) and non monetary (health and education) dimensions of well being. Stochastic poverty dominance tests show that rural areas are poorer in the three dimensions regardless of poverty line chosen. Stochastic inequality dominance tests find that the north and south dominate the centre in hea...

The evidence for other-regarding preferences is extensive. How should an individual with other-regarding preferences compare two distinct distributions of income? We show that the classical concepts of first and second order stochastic dominance are inadequate to answer this question. We develop the relevant stochastic dominance concepts for the case of the popular other-regarding preferences i...