We characterize a range of Stochastic Dominance relations by means of finite systems of convex inequalities. For 'SD optimality' of degree N=1, 2, 3, 4 and 'SD efficiency' of degree N=2, 3, 4, 5, we obtain exact systems that can be implemented using Linear Programming or Convex Quadratic...

We develop a Linear Programming test to analyze if a given investment portfolio is efficient in terms of second-order stochastic dominance relative to all possible portfolios formed from a set of base assets. The test has a convenient Linear Programming structure. In case of efficiency, the...

This paper develops a novel statistic for firm efficiency called efficiency depth that allows for statistical inference in case of errors-in-variables. We derive statistical tests that require minimal statistical assumptions; neither the sample distribution nor the noise level is required. An...