Comparative Statics on the Left-Side Relatively Weak First-Degree Stochastic Dominance Order and Its Applications
Suyeol Ryu, Iltae Kim · Seoul National University Open Repository (Seoul National University) · 2003
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.