ABSTRACT
In this chapter we examine the existence of uniform weak orders between welfare outcomes measured by total real incomes. Partial strong orders are commonly used on the basis of specific utility functions and their corresponding indices. The latter is the predominant form of evaluation and is done when one employs indices of inequality or poverty in welfare, mean-variance analysis in finance, or performance indices such as average scores or wages in program evaluation. Such strong orderings do not command consensus. Based on the expected utility paradigm, Stochastic Dominance (SD), Lorenz and General Lorenz are examples of ‘orderings’ that attempt to resolve this problem.
