Implementing the Capability Approach with Respect for Individual Valuations: An Illustration with Colombian Data

32 Pages Posted: 15 Jun 2016

See all articles by Koen Decancq

Koen Decancq

University of Antwerp; KU Leuven - Center for Economic Studies; Catholic University of Louvain (UCL) - Center for Operations Research and Econometrics (CORE); University of Mannheim - Mannheim Centre for European Social Research (MZES)

Erik Schokkaert

Catholic University of Leuven (KUL)

Blanca Zuluaga

Universidad ICESI - Economics & Management; KU Leuven - Center for Economic Studies

Date Written: June 2016

Abstract

In many applications of the capability approach it is necessary to rank individuals with respect to their well-being. This raises the difficult question of how to select the weights to be attached to the relevant functionings or capabilities. We explore the possibility of using individual valuations to set these weights and we propose the equivalent income measure as a specific well-being measure that is consistent with these individual valuations. We discuss its implementation and compare the results to four alternative well-being measures based on Colombian data for 2008: income, subjective well-being, the official SISBEN index, and the Colombian Multidimensional Poverty Index (CMPI). We find that there is remarkably little overlap between the different measures. The different well-being measures identify different individuals as worst-off. This finding highlights the empirical relevance of the selection of the well-being measure when implementing the capability approach.

Suggested Citation

Decancq, Koen and Schokkaert, Erik and Zuluaga, Blanca, Implementing the Capability Approach with Respect for Individual Valuations: An Illustration with Colombian Data (June 2016). Available at SSRN: https://ssrn.com/abstract=2795460 or http://dx.doi.org/10.2139/ssrn.2795460

Koen Decancq (Contact Author)

University of Antwerp ( email )

Prinsstraat 13
Antwerp, Antwerp 2000
Belgium

KU Leuven - Center for Economic Studies ( email )

Naamsestraat 69
Leuven, B-3000
Belgium

Catholic University of Louvain (UCL) - Center for Operations Research and Econometrics (CORE) ( email )

34 Voie du Roman Pays
B-1348 Louvain-la-Neuve, b-1348
Belgium

University of Mannheim - Mannheim Centre for European Social Research (MZES) ( email )

D-68131 Mannheim
Germany

Erik Schokkaert

Catholic University of Leuven (KUL) ( email )

Oude Markt 13
Leuven, Vlaams-Brabant 3000
Belgium

Blanca Zuluaga

Universidad ICESI - Economics & Management ( email )

Cali
Colombia

KU Leuven - Center for Economic Studies ( email )

Naamsestraat 69
Leuven, B-3000
Belgium

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