This paper tests the bilateral price-level convergence among 52 U.S. cities at the good level by using a new econometric approach. The estimated median half lives are far below the half lives found in the corresponding studies for the U.S.

We propose an empirical likelihood-based method of inference for comparing inequality between two populations. A series of Monte Carlo experiments are used to assess our method’s finite sample performance. We illustrate our approach using some Canadian household income data.

We propose a test of bivariate stochastic dominance within a generalized framework for testing inequality restrictions, utilizing the covariance structure of the estimates of the joint distribution functions. Monte Carlo simulations and an empirical example assess its usefulness.