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Multidimensional Measures of Poverty and Well-being Based on Latent Variable Models

In: Quantitative Approaches to Multidimensional Poverty Measurement

Author

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  • Jaya Krishnakumar

Abstract

Development is a multidimensional concept incorporating diverse social, economic, cultural and political dimensions and economic growth, though necessary, is not sufficient in itself to bring about development in this broad sense. According to Nobel Prize Laureate Amartya Sen (for example, Sen, 1985, 1999), the basic purpose of development is to enlarge people’s choices so that they can lead the life they want to. In this approach, the choices are termed ‘capabilities’ and the actual levels of achievement attained in the various dimensions are called ‘functionings’. Thus human development is the enhancement of the set of choices or capabilities of individuals whereas functionings are a set of ‘beings’ and ‘doings’ which are the results of a given choice. The concept of human development proposed by Mahbub ul Haq, in the first Human Development Report in 1990 (see UNDP, 1990), largely inspired by Sen’s various works, represents a major step ahead in the concretization of this extended meaning of development and in the effort to bring people’s lives to the centre of thinking and analysis. Since then, human development and human deprivation have been the object of extensive theoretical and empirical research. They have been studied from various angles: conceptual, methodological, operational and policy making. As it is not possible to directly observe and measure human development in its broad sense or the lack of it, they are generally constructed as composite indices based on several variables (indicators).

Suggested Citation

  • Jaya Krishnakumar, 2008. "Multidimensional Measures of Poverty and Well-being Based on Latent Variable Models," Palgrave Macmillan Books, in: Nanak Kakwani & Jacques Silber (ed.), Quantitative Approaches to Multidimensional Poverty Measurement, chapter 7, pages 118-134, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-0-230-58235-4_7
    DOI: 10.1057/9780230582354_7
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    Cited by:

    1. Tindara Addabbo & Gisella Facchinetti, 2013. "Fuzzy logic and the capability approach," Center for the Analysis of Public Policies (CAPP) 0106, Universita di Modena e Reggio Emilia, Dipartimento di Economia "Marco Biagi".
    2. Krishnakumar, Jaya & Ballon, Paola, 2008. "Estimating Basic Capabilities: A Structural Equation Model Applied to Bolivia," World Development, Elsevier, vol. 36(6), pages 992-1010, June.
    3. Brinda Viswanathan, 2014. "Variations in Women’s Heights across Social and Religious Groups Among Indian States," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 119(2), pages 1149-1169, November.
    4. Tullio, Federico & Bartolucci, Francesco, 2019. "Evaluating time-varying treatment effects in latent Markov models: An application to the effect of remittances on poverty dynamics," MPRA Paper 91459, University Library of Munich, Germany.

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