ABSTRACT
The stochastic dominance method of measuring uncertainty developed
use of higher level stochastic dominance indices. A second safequard
which the cardinal measures are not always valid.
A more serious problem with our measure of uncertainty, or indeed
perhaps not even the most appropriate one. In the case of the Brazilian
crawling peg, for example, the government announced how the new exchange
our econometric estimates of the uncertainty coefficients was incorrectly
Perhaps the most interesting issue which our method of measuring
these measures will be dominated by variance, and in the case of H3 (b),
perfectly correlated. The progressive addition of higher central moments
as we impose higher degree rules narrows substantially the likelihood that
central moments large, or both, for the stochastic dominance approach and
either the use of variance, equivalent to H3(b), or the higher level H6(b)
answers.
