Although a wide array of stochastic dominance tests exist for poverty measurement and identification, they assume the income distributions have independent poverty lines or a common absolute (fixed) poverty line. We propose a stochastic dominance test for comparing income distributions up to a...

The design of a poverty measure involves the selection of a set of parameters and poverty figures. In most cases the measures are estimated from sample surveys. This raises the question of how conclusive particular poverty comparisons are subject to both the set of selected parameters (or...

[Update: Within four weeks of the original publication of this research report, Risk Magazine reported in its 28th February 2012 issue story titled 'Goodbye VaR? Basel to Consider Other Risk Metrics': "A review of trading book capital rules, due to be launched in March by the Basel Committee on...

This study implements the modern poverty measure for Minnesota using the American Community Survey (ACS) and simulates the potential effects of alternative safety net policies on poverty. The analysis uses the TRIM microsimulation model to correct for survey underreporting and to add information...

This paper explores the feasibility of calculating absolute poverty lines on the basis of minimum food expenditures in developed countries. It makes three important contributions. First, it demonstrates that standard statistical methods used in the developing world deliver either inadequate...

Most equivalence scales which are applied in research on poverty and inequality do not depend on income, although there is strong empirical evidence that equivalence scales in fact are income dependent. This paper explores the consistency of results derived from income independent and income...

We reformulate and decompose the Pearson and Spearman correlation coefficients into two components. We recommend the first component for detecting linear or monotonic relationships and the second for recognizing patterns of two parallel lines, providing robust versions to outliers. Thus, we...

One innovation defined in the new market risk rules by the Fundamental Review of the Trading Book (FRTB) is the Non-Modellable Risk Factor (NMRF) framework. This new concept introduces a methodology to differentiate between modellable and non-modellable risk factors in the Internal Models...

This paper analyzes the robustness of standard techniques for risk analysis, with a special emphasis on the Basel III risk measures. We focus on the difference between value-at-risk and expected shortfall, their small sample properties, the scope for manipulating risk measures and how estimation...

When screening a production process for nonconforming items the objective is to improve the average outgoing quality level. Due to measurement errors specification limits cannot be checked directly and hence test limits are required, which meet some given requirement, here given by a prescribed...