Restricted and Unrestricted Dominance for Welfare, Inequality and Poverty Orderings

Abstract

This paper extends the previous literature on the ethical links between the measurement of poverty, social welfare and inequality. We show inter alia, how, when the range of possible poverty lines is unbounded above, a robust ranking of absolute poverty may be interpreted as a robust ranking of social welfare, and a robust ranking of relative poverty may be intepreted as a robust ranking of inequality, and this, for any order of stochastic dominance.Welfare, Inequality, Poverty, Stochastic Dominance