Test of dominance relations based on kernel smoothing method

AbstractNew test statistics for weakly Lorenz dominance and weakly generalised Lorenz dominance are proposed, and some asymptotic properties of test statistics are obtained. The simulation results show that our test statistics can improve test power in comparison with the non-smoothed empirical methods. Finally, we apply our inference framework to an actual example.Keywords: Bootstraphypothesis testkernel functionweakly generalised Lorenz dominanceweakly Lorenz dominanceMathematics Subject Classifications (2020): 62F0362F0562P25 Disclosure statementNo potential conflict of interest was reported by the authors.Additional informationFundingThis work was supported by the National Nature Science Foundation of China (Nos. 71971204, 71871208, 11701518), and the Anhui Provincial Natural Science Foundation for Distinguished Young Scholar (2208085J43).