Joint stochastic orders of high degrees and their applications in portfolio selections

Research output: Contribution to journalArticlepeer-review

Abstract

In this paper, we propose two new classes of joint stochastic orders, namely joint (reversed) hazard order of degree n and joint n-increasing convex/concave order, and establish their theoretical properties. These new orders substantially generalize the existing class of joint stochastic orders, and incorporate them in one general framework. We also explore the applications of these orders in portfolio selections and unify similar studies on this problem.

Original languageEnglish (US)
Pages (from-to)141-148
Number of pages8
JournalInsurance: Mathematics and Economics
Volume76
DOIs
StatePublished - Sep 2017
Externally publishedYes

Keywords

  • Functional characterization
  • High degree stochastic order
  • Joint (reversed) hazard rate order
  • Joint increasing convex/concave order
  • Optimal portfolio selections

ASJC Scopus subject areas

  • Statistics and Probability
  • Economics and Econometrics
  • Statistics, Probability and Uncertainty

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