TESTING HYPOTHESES ABOUT ABSOLUTE CONCENTRATION CURVES AND MARGINAL CONDITIONAL STOCHASTIC DOMINANCE

We consider statistical tests concerning various relationships between two absolute concentration curves ~ACCs!+ In particular, we consider tests for determining if the two ACCs coincide, if one is above another in a specified order, or if they do not intersect without specifying which one is above0below the other one+ These problems are of interest in the context of marginal conditional stochastic dominance ~MCSD!+ Constructing statistical tests for the MCSD relies on ideas and also on their modifications developed by Linton, Maasoumi, and Whang ~2005, Review of Economic Studies 72, 735–765! in the context of stochastic dominance for distribution functions+ Our theoretical considerations are supplemented with a simulation study+