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- W2099054706 abstract "When Barret and Donald (2003) in Econometrica proposed a consistent test of stochastic dominance, they were silent about the asymptotic unbiasedness of their tests against p n-converging Pitman local alternatives. This paper shows that when we focus on …rst-order stochastic dominance, there exists a wide class of p n-converging Pitman local alternatives against which their test is asymptotically biased, i.e., having the local asymptotic power strictly below the asymptotic size. This phenomenon more generally applies to one-sided nonparametric tests which have a sup norm of a shifted standard Brownian bridge as their limit under p n-converging Pitman local alternatives. Among other examples are tests of independence or conditional independence. We provide an intuitive explanation behind this phenomenon, and illustrate the implications using the simulation studies." @default.
- W2099054706 created "2016-06-24" @default.
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- W2099054706 date "2008-01-01" @default.
- W2099054706 modified "2023-10-18" @default.
- W2099054706 title "Testing Distributional Inequalities and Asymptotic Bias" @default.
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- W2099054706 doi "https://doi.org/10.2139/ssrn.1095830" @default.
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