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Externality and Literacy: A Note

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  • S. Subramanian

Abstract

Kaushik Basu and James Foster (1998) have opened up an interesting approach to the measurement of literacy, in which the phenomenon of externality has an important role to play. The externality these authors examine is what one may call a 'material' externality, and they demonstrate that reckoning such an externality in the measurement of literacy provides an instrumental justification for 'horizontal equity'. The present note elucidates this link through a specific formulation of the Basu-Foster thesis. It also suggests that, apart from a 'material externality', there is also a 'psychic externality' to be considered. The 'psychic externality' runs in a direction somewhat orthogonal to that of the 'material externality' postulated by Basu and Foster, and it is shown that reckoning such an externality in the measurement of literacy provides an instrumental justification for being sensitive to levels of literacy-attainment in comparisons of literacy improvements. In a broad sense, the note suggests that considerations of 'identity' can be formulated through alternative conceptions of 'externality', which turn out to have unexpected implications for the assessment of 'equity' and 'improvement' in literacy comparisons.

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  • S. Subramanian, 2008. "Externality and Literacy: A Note," Journal of Development Studies, Taylor & Francis Journals, vol. 44(6), pages 839-848.
    • Handle: RePEc:taf:jdevst:v:44:y:2008:i:6:p:839-848
    DOI: 10.1080/00220380802058396
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    References listed on IDEAS

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    1. Kakwani, N., 1993. "Performance in living standards : An international comparison," Journal of Development Economics, Elsevier, vol. 41(2), pages 307-336, August.
    2. Basu, Kaushik & Foster, James E, 1998. "On Measuring Literacy," Economic Journal, Royal Economic Society, vol. 108(451), pages 1733-1749, November.
    3. Subramanian, S., 2004. "Measuring literacy: some extensions of the Basu-Foster framework," Journal of Development Economics, Elsevier, vol. 73(1), pages 453-463, February.
    4. Dutta, Indranil, 2004. "Generalized measures of literacy," Mathematical Social Sciences, Elsevier, vol. 48(1), pages 69-80, July.
    5. Gibson, John, 2001. "Literacy and Intrahousehold Externalities," World Development, Elsevier, vol. 29(1), pages 155-166, January.
    6. Maddox, Bryan, 2007. "Worlds Apart? Ethnographic Reflections on "Effective Literacy" and Intrahousehold Externalities," World Development, Elsevier, vol. 35(3), pages 532-541, March.
    7. M. Majumdar & S. Subramanian, 2001. "Capability Failure and Group Disparities : Some Evidence from India for the 1980s," Journal of Development Studies, Taylor & Francis Journals, vol. 37(5), pages 104-140.
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    2. S. Subramanian, 2009. "Poverty Measurement in the Presence of a 'Group-Affiliation' Externality," Journal of Human Development and Capabilities, Taylor & Francis Journals, vol. 10(1), pages 63-76.

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