This note investigates the behavior of stochastic dominance tests of censored distributions which are dependent on nuisance parameters. In particular, we consider finite mixture distributions that are subject to exogenous censoring. To deal with this potential problem, critical values of the proposed tests statistics are calculated using a parametric bootstrap. The tests are then applied to compare differences between distributions of incomplete employment spells with different levels of censoring obtained from Canadian General Social Survey data. The size of the proposed test statistics is computed using fitted GSS data.

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Keywords Stochastic Dominance Tests, Parametric Bootstrap, Censored Dis-, tributions, Finite Mixtures.
JEL Semiparametric and Nonparametric Methods (jel C14), Hypothesis Testing (jel C12), Statistical Distributions (jel C16), Duration Analysis (jel C41)
Publisher Department of Economics
Series Carleton Economic Papers (CEP)
Huynhy, Kim P., Ignaczakz, Luke, & Voia, M.-C. (2009). Stochastic Dominance, Estimation, and Inference for Censored Distributions with Nuisance Parameters (No. CEP 10-02). Carleton Economic Papers (CEP). Department of Economics.