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Using Efficiency Analysis to Measure Individual Well-Being with an Illustration for Catalonia

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  • Ramos, Xavier

    (Universitat Autònoma de Barcelona)

Abstract

This paper shows how distance functions, a tool typically employed in production economics to measure the distance between a set of inputs and a set of outputs, can be employed to approximate a composite measure encompassing the many dimensions of well-being. It also illustrates how to implement the methodology originally put forth by Lovell et al. (1994), using new data for Catalonia. We draw policy implications and critically appraise the discussed methodology suggesting avenues for further research.

Suggested Citation

  • Ramos, Xavier, 2005. "Using Efficiency Analysis to Measure Individual Well-Being with an Illustration for Catalonia," IZA Discussion Papers 1748, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp1748
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    10. P. Taylor, Mark & Bardasi, Elena, 2005. "Marriage and wages," ISER Working Paper Series 2005-01, Institute for Social and Economic Research.
    11. Xavier Ramos & Jacques Silber, 2005. "On The Application Of Efficiency Analysis To The Study Of The Dimensions Of Human Development," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 51(2), pages 285-309, June.
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    Cited by:

    1. Martin Binder & Tom Broekel, 2011. "Applying a Non-parametric Efficiency Analysis to Measure Conversion Efficiency in Great Britain," Journal of Human Development and Capabilities, Taylor & Francis Journals, vol. 12(2), pages 257-281.
    2. Martin Binder & Tom Broekel, 2012. "Happiness No Matter the Cost? An Examination on How Efficiently Individuals Reach Their Happiness Levels," Journal of Happiness Studies, Springer, vol. 13(4), pages 621-645, August.
    3. Martin Binder & Alex Coad, 2010. "Disentangling the Circularity in Sen's Capability Approach – An Analysis of the Co-Evolution of Functioning Achievement and Resources," Papers on Economics and Evolution 2010-04, Philipps University Marburg, Department of Geography.
    4. Mahadevan, Renuka & Hoang, Viet-Ngu, 2016. "The nexus between poverty and deprivation in Vietnam," Journal of Policy Modeling, Elsevier, vol. 38(2), pages 290-303.
    5. Martin Binder & Alex Coad, 2011. "Disentangling the Circularity in Sen’s Capability Approach: An Analysis of the Co-Evolution of Functioning Achievement and Resources," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 103(3), pages 327-355, September.
    6. Henderson, Heath & Follett, Lendie, 2020. "A Bayesian framework for estimating human capabilities," World Development, Elsevier, vol. 129(C).

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    More about this item

    Keywords

    well-being; multidimensional poverty; distance function; Catalonia;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty

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