Measuring human development: a stochastic dominance approach

Climate Change: a Stochastic Dominance Approach

Global climate change presents a classic problem of decision making under uncertainty with learning. We provide stochastic dominance theorems that provide new insights into when abatement and investment into low carbon technology should increase in risk. We show that R&D into lowcarbon technologies and near-term abatement are in some sense opposites in terms of risk. Abatement provides insuranc...

Spanning and Intersection: A Stochastic Dominance Approach

We propose linear programming tests for spanning and intersection based on stochastic dominance rather than mean-variance analysis. An empirical application investigates the diversification benefits to US investors from emerging equity markets. 5001-6182 Business 4001-4280.7 Finance Management, Business Finance, Corporation Finance Library of Congress Classification (LCC) HG 1576+ Statistics Ba...

A Stochastic Dominance Approach to Spanning

We develop a Stochastic Dominance methodology to analyze if new assets expand the investment possibilities for rational nonsatiable and risk-averse investors. This methodology avoids the simplifying assumptions underlying the traditional mean-variance approach to spanning. The methodology is applied to analyze the stock market behavior of small firms in the month of January. Our findings sugges...

Measuring of second-order stochastic dominance portfolio efficiency

In this paper, we deal with second-order stochastic dominance (SSD) portfolio efficiency with respect to all portfolios that can be created from a considered set of assets. Assuming scenario approach for distribution of returns several SSD portfolio efficiency tests were proposed. We introduce a δ-SSD portfolio efficiency approach and we analyze the stability of SSD portfolio efficiency and δ-S...

Regional Convergence in the European Union: A Stochastic Dominance Approach