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Making Sen’s capability approach operational: a random scale framework

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  • John Dagsvik

Abstract

Amartya Sen has developed the so-called capability approach to meet the criticism that income alone may be insufficient as a measure of economic inequality. This is because knowledge about people’s income does not tell us what they are able to acquire with that income. For example, people with the same income may not have the same access to health and transportation services, schools and opportunities in the labor market. Recently, there has been growing interest in empirical studies based on the capability approach. Most of these, however, are only loosely related to quantitative behavioral theory, at least in a concrete and empirically operational way. The purpose of this paper is to demonstrate that the theory of random scale (utility) models offers a powerful theoretical and empirical framework for representing and accounting for key aspects of Sen’s theory. Copyright Springer Science+Business Media New York 2013

Suggested Citation

  • John Dagsvik, 2013. "Making Sen’s capability approach operational: a random scale framework," Theory and Decision, Springer, vol. 74(1), pages 75-105, January.
    • Handle: RePEc:kap:theord:v:74:y:2013:i:1:p:75-105
    DOI: 10.1007/s11238-012-9340-5
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    Cited by:

    1. Andreassen, Leif & Di Tommaso, Maria Laura & Maccagnan, Anna, 2015. "Do Men Care? Men’s Supply Of Unpaid Labour," Department of Economics and Statistics Cognetti de Martiis. Working Papers 201545, University of Turin.
    2. L. Andreassen & M. L. Tommaso, 2018. "Estimating capabilities with random scale models: women’s freedom of movement," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 50(4), pages 625-661, April.
    3. Andreassen, Leif & Dagsvik, John & Di Tommaso, Maria Laura, 2013. "Measuring capabilities with random scale models. Women’s freedom of movement," Department of Economics and Statistics Cognetti de Martiis. Working Papers 201334, University of Turin.
    4. Paul Mark Mitchell & Samantha Husbands & Sarah Byford & Philip Kinghorn & Cara Bailey & Tim J. Peters & Joanna Coast, 2021. "Challenges in developing capability measures for children and young people for use in the economic evaluation of health and care interventions," Health Economics, John Wiley & Sons, Ltd., vol. 30(9), pages 1990-2003, September.
    5. Bat-hen Nahmias-Biran & Yoram Shiftan, 2020. "Using activity-based models and the capability approach to evaluate equity considerations in transportation projects," Transportation, Springer, vol. 47(5), pages 2287-2305, October.

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    More about this item

    Keywords

    Capability approach; Random scale; Discrete choice; Welfare function; C25; C35; D31; D63;
    All these keywords.

    JEL classification:

    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
    • C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

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