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Seoul Journal of Economics - Vol. 16 , No. 1
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Seoul Journal of Economics - Vol. 16, No. 1, pp. 59-69
Abbreviation: SJE
ISSN: 1225-0279 (Print)
Print publication date 28 Feb 2003
Received 09 Jun 2003 Revised 15 Dec 2003

Comparative Statics on the Left-Side Relatively Weak First-Degree Stochastic Dominance Order and Its Applications
Suyeol Ryu ; Iltae Kim
Research Fellow, Busan Development Institute, Busan, Republic of Korea, Tel: +82-51-640-2025 (ryusuyeo@bdi.re.kr)
Professor, Department of Economics and Management Research Institute, Chonnam National University, Gwangju 500-757, Republic of Korea, Tel: +82-62-530-1550 (kit2603@chonnam.ac.kr)

JEL Classification: D81

Abstract

This paper proposes a new concept of the left-side relatively weak first-degree stochastic dominance (L-RWFSD) order that extends the monotone likelihood ratio (MLR) order and the left-side monotone likelihood ratio (L-MLR) order. We show that this shift is a larger subset of FSD shifts than the MLR shift and the L-MLR shift that derive the same comparative statics results.

Keywords: Left-side relatively weak first-degree stochastic dominance, Monotone likelihood ratio order, Left-side monotone likelihood ratio order
Acknowledgments

The authors would like to thank anonymous referees for insightful comments.

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