## Abstract

We are interested in statistical tests that are able to uncover that one

method is better than another one. The Wilcoxon-Mann-Whitney rank-sum

and the Wilcoxon sign-rank test are the most popular tests for showing that

two methods are different. Yet all of the 32 papers in Economics we surveyed

misused them to claim evidence that one method is better, without making

any additional assumptions. We present eight nonparametric tests that can

correctly identify which method is better in terms of a stochastic inequality,

median difference and difference in medians or means, without adding any as-

sumptions. We show that they perform very well in the data sets from the

surveyed papers. The two tests for comparing medians are novel, constructed

in the spirit of Mood’s test.

method is better than another one. The Wilcoxon-Mann-Whitney rank-sum

and the Wilcoxon sign-rank test are the most popular tests for showing that

two methods are different. Yet all of the 32 papers in Economics we surveyed

misused them to claim evidence that one method is better, without making

any additional assumptions. We present eight nonparametric tests that can

correctly identify which method is better in terms of a stochastic inequality,

median difference and difference in medians or means, without adding any as-

sumptions. We show that they perform very well in the data sets from the

surveyed papers. The two tests for comparing medians are novel, constructed

in the spirit of Mood’s test.

Originalsprache | Englisch |
---|---|

Seitenumfang | 43 |

Publikationsstatus | Veröffentlicht - Okt. 2015 |

### Publikationsreihe

Reihe | Vienna Economics Papers |
---|---|

Nummer | No.1512 |

## ÖFOS 2012

- 502025 Ökonometrie