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An approximation to the standard of living index: the colombian case

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  • Luis Fernando Gamboa
  • Darwin Cortes
  • Jorge Ivan Gonzalez

Abstract

This document seeks to show the main properties of a standard of living index using the theoretical approach of Amartya Sen. We establish the link among concepts such as: welfare, well-being, agency achievement and standard of living. Optimal scaling methodology was fundamental in order to test the properties on the Colombian case. These properties are Monotonicity, No independence of irrelevant alternatives, Concavity, Informativity and Substituibility. Resumen. El documento busca mostrar las principales propiedades de un indicador de estándar de vida dentro del enfoque teórico de Amartya Sen. Establecemos un puente entre conceptos tales como: bienestar económico, bienestar, logro de agencia y estándar de vida. La metodología del Optimal scaling fue usada para probar las propiedades de Monotonicidad, No independencia de alternativas irrelevantes, Concavidad, informatividad y sustituibilidad. ********************************************************************** El documento busca mostrar las principales propiedades de un indicador de estándar de vida dentro del enfoque teórico de Amartya Sen. Establecemos un puente entre conceptos tales como: bienestar económico, bienestar, logro de agencia y estándar de vida. La metodología del Optimal scaling fue usada para probar las propiedades de Monotonicidad, No independencia de alternativas irrelevantes, Concavidad, informatividad y sustituibilidad.

Suggested Citation

  • Luis Fernando Gamboa & Darwin Cortes & Jorge Ivan Gonzalez, 2001. "An approximation to the standard of living index: the colombian case," Borradores de Investigación 1972, Universidad del Rosario.
    • Handle: RePEc:col:000091:001972
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    References listed on IDEAS

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    1. Amartya Sen, 1997. "Maximization and the Act of Choice," Econometrica, Econometric Society, vol. 65(4), pages 745-780, July.
    2. Forrest Young & Yoshio Takane & Jan Leeuw, 1978. "The principal components of mixed measurement level multivariate data: An alternating least squares method with optimal scaling features," Psychometrika, Springer;The Psychometric Society, vol. 43(2), pages 279-281, June.
    3. Sen, Amartya, 1973. "On Economic Inequality," OUP Catalogue, Oxford University Press, number 9780198281931.
    4. Sen, Amartya, 1993. "Markets and Freedoms: Achievements and Limitations of the Market Mechanism in Promoting Individual Freedoms," Oxford Economic Papers, Oxford University Press, vol. 45(4), pages 519-541, October.
    5. S. Winsberg & J. Ramsay, 1983. "Monotone spline transformations for dimension reduction," Psychometrika, Springer;The Psychometric Society, vol. 48(4), pages 575-595, December.
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