Multiple comparisons with the best, with economic applications

✍ Scribed by William C. Horrace; Peter Schmidt

• Publisher: John Wiley and Sons
• Year: 2000
• Tongue: English
• Weight: 267 KB
• Volume: 15
• Category: Article
• ISSN: 0883-7252
• DOI: 10.1002/(sici)1099-1255(200001/02)15:1<1::aid-jae551>3.0.co;2-y

✦ Synopsis

In this paper we discuss a statistical method called multiple comparisons with the best, or MCB. Suppose that we have N populations, and population i has parameter value y i . Let y N max i1YFFFYN y i , the parameter value for the `best' population. Then MCB constructs joint con®dence intervals for the dierences

It is not assumed that it is known which population is best, and part of the problem is to say whether any population is so identi®ed, at the given con®dence level. This paper is meant to introduce MCB to economists. We discuss possible uses of MCB in economics. The application that we treat in most detail is the construction of con®dence intervals for ineciency measures from stochastic frontier models with panel data. We also consider an application to the analysis of labour market wage gaps.