By Wiebke Kuklys
Kuklys examines how Nobel Prize-winning economist Amartya Sen’s method of welfare size might be installed perform for poverty and inequality dimension in prosperous societies comparable to the united kingdom. Sen argues that an individual’s welfare shouldn't be measured when it comes to her source of revenue, yet in phrases what she will be able to really do or be, her functions. In Chapters 1 and a couple of, Kuklys describes the aptitude procedure from a regular welfare fiscal standpoint and gives a accomplished literature assessment of the empirical functions during this region of study. within the final chapters, novel econometric strategies are hired to operationalise the options of functionings and potential to enquire inequality and poverty when it comes to power within the united kingdom. Kuklys unearths that power dimension is often an invaluable supplement to standard financial research, and especially so in relation to capability-deprived disabled individuals.
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Additional resources for Amartya Sen's Capability Approach: Theoretical Insights and Empirical Applications
In Sect. 1 we focus on the methodological issues involved in the measurement of functionings (the assessment of vector hi). 2 reviews the applied literature on the measurement of welfare levels as used in poverty and inequality analysis, and Sect. 3 discusses the capability literature on policy evaluation. 1 Methodological Issues In the quantitative empirical literature on the capability approach, four main methodological problems are addressed: the selection of the relevant functionings, the measurement of these functionings at the individual level, the aggregation of these functionings into a composite (scalar) measure of individual welfare, and finally, the aggregation of individual welfare to social welfare.
Of course, welfarism could be interpreted as being sensitive to some of these aspects. If the act of choice itself generated utility, then being able to choose from B would generate more utility for individual i than A, even though the utilities derived from the option that is picked alone (a) will be the same. The problem thus lies in the fact that studies in applied welfare economics generally do not compare the utility generated by having option set A or B, but instead compares the option picked from A or B.
If the variables are measured on different scales, the factors in a two or more factor model might pick up method effects rather than substantive variance effects: if health problems are measured on a 0-1 scale and dwelling problems on a Likert scale from 1 to 5, factor analysis might extract two factors because of this difference in measurement scales, not because there are substantive differences in variance. 38 3 SEM - An Alternative for Measuring Functionings The problem of measurement error is treated explicitly in factor analysis.
Amartya Sen's Capability Approach: Theoretical Insights and Empirical Applications by Wiebke Kuklys