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Testing Conditional Stochastic Dominance via Copula Derivatives

Weiqi Yang, Weiwei Zhuang, Xiaojun Song

arXiv 18 Sep 2026 · Statistics — Methodology

arXiv:2609.21622 · PDF · Extracted main text

Abstract

Comparing two populations at the same physical covariate value requires more than conditional means or isolated target-point decisions: researchers may need evidence about an entire conditional-distribution ordering over a continuum, even when covariate margins differ. This paper makes that common-value comparison estimable under an explicit structure--flexibility tradeoff and turns the resulting surface into simultaneous evidence for first-order stochastic dominance. Population-specific margins map the common covariate value into each group, while a fitted copula-derivative representation links conditional distributions across the region. Uniform inference propagates uncertainty from both the margins and dependence model through a one-sided statistic with unknown binding locations. Under correct specification within a finite copula class, smoothness and trimming conditions, and a uniquely best candidate family, the procedure admits uniform control and consistent calibration. Simulations show increasing rejection as alternatives become more distinguishable, alongside model-selection sensitivity and small-sample size distortion. In a descriptive PSID application, the high--low parental-education comparison satisfies the two-direction criterion after multiplicity adjustment, whereas adjacent education-group comparisons remain inconclusive. The framework therefore supports region-wide distributional comparison while making its structural and inferential boundaries explicit.

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Most heavily cited references

The works this paper leans on most, across its whole bibliography — not restricted to papers in our corpus. Ranked by composite intensity, which combines how often a work is mentioned, how many sections mention it, and how much of that falls in the main text rather than the appendix.

ReferenceIntensityMentionsSectionsMain text
1Tsukahara, Hideatsu (2005) Semiparametric estimation in copula models0.64422100%
2Fang, Z. and Santos, A (2019) Inference on directionally differentiable functions0.5112250%
3Præstgaard, John and Wellner, Jon A (1993) Exchangeably Weighted Bootstraps of the General Empirical Process0.5112250%
4Federico A. Bugni and Ivan A. Canay and Deborah Kim (2025) Testing Conditional Stochastic Dominance at Target Points0.51121100%
5Chang, M. and Lee, S. and Whang, Y.-J (2015) Nonparametric Tests of Conditional Treatment Effects with an Application to Single-Sex Schooling on Academic Achievements0.51121100%
6Miguel A. Delgado and Juan Carlos Escanciano (2013) Conditional Stochastic Dominance Testing0.51121100%
7Matt Goldman and David M. Kaplan (2018) Comparing Distributions by Multiple Testing across Quantiles or CDF Values0.51121100%
8Jesus Gonzalo and Jose Olmo (2014) Conditional Stochastic Dominance Tests in Dynamic Settings0.51121100%
9Oliver Linton and Myung Hwan Seo and Yoon-Jae Whang (2023) Testing Stochastic Dominance with Many Conditioning Variables0.51121100%
10Oliver Linton and Kyungchul Song and Yoon-Jae Whang (2010) An Improved Bootstrap Test of Stochastic Dominance0.51121100%

Showing the top 10 of 27 scored citations.