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  • 23 - Econometric and Statistical Models for Operationalizing the Capability Approach

  • from Part II - Methods, Measurement and Empirical Evidence
  • Edited by Enrica Chiappero-Martinetti, Siddiqur Osmani, Mozaffar Qizilbash, University of York
  • Book:
    The Cambridge Handbook of the Capability Approach
    Published online:
    11 November 2020
    Print publication:
    19 November 2020, pp 453-476

  • Summary

    This chapter provides an overview of econometric and statistical methodologies that have been proposed in the literature for operationalizing the capability approach. It covers descriptive as well as modelling approaches, the former focusing on developing a full picture of the well-being situation using many indicators, and the latter going further to determine possible ‘causes’ for the situation, and hence leading to potential actions for improvement. It also highlights how the capability or freedom aspect is modelled using latent variables in the explanatory frameworks. Finally, it mentions some promising directions for future research in this domain and suggests combining the different approaches to obtain an optimal well-being output integrating both the descriptive and explanatory properties and allowing for informed policy decisions.