A Simple Intertemporal Model of Capabilities Expansion

Mercado, Ruben (2015): A Simple Intertemporal Model of Capabilities Expansion.

Abstract

The “capabilities approach” due to Amartya Sen has become influential in the field of economic development, and it is up to a point the theoretical background of the Human Development Index. While the approach provides a rich conceptual framework to define the goals of development, its analysis of the means to achieve them seems lacking. Building on Kuklys and Robeyns interpretation of Sen’s theory, I show how take a first step to link goals and means in the capabilities approach using a simple modified model grounded on standard growth theory.

• Item Type: MPRA Paper
• Language: English
• Keywords: Economic growth; Capabilities Theory; Human Development Theory
• Subjects: O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development; O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O10 - General; O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O11 - Macroeconomic Analyses of Economic Development

References

Anand, S. and A. Sen (2000) The Income Component of the Human Development Index, Journal of Human Development, Vol. 1, No. 1.

Atkinson, A. and N. Stern (1981) On Labour Supply and Commodity Demands, in A. Deaton (Ed.) Essays in the Theory and Measurement of Consumer Behavior I Honour of Sir Richard Stone, Cambridge University Press.

Barro, R. (1996) Health and Economic Growth, Pan American Health Organization.

Basu, K. and L. Lopez Calva (2011) Functionings and Capabilities, in K. Arrow, A. Sen and K. Suzumura (Eds.) Handbook of Social Choice and Welfare, Vol. 2., North Holland.

Becker, G. (1965) A Theory of the Allocation of Time, Economic Journal Vol. 75, Num. 299.

Duczynski, P. (unpublished) Models of Growth with Capital Contributing to Utility, Department of Economics and Management, University of Hradec Kralove.

Kuklys, W. and I. Robeyns (2005) Sen’s Capability Approach to Welfare Economics, in W. Kuklys, Amartya Sen’s Capability Approach: Theoretical Insights and Empirical Applications, Springer Verlag.

Mercado, R. (2013) Development Indices, Inequality and Applied Development Policy Analysis: some issues for discussion, in Federalism and Inequality in the Global South, May 22-23, Brown University, USA

Sen, A. (1985) Commodities and Capabilities, North Holland.

Sen, A. (1989) Development as Capability Expansion, Journal of Development Planning 19, reprinted in S. Fukuda-Parr and A. Shiva Kumar, eds. (2003) Readings in Human Development, Oxford University Press.

Sen, A. (1997) Maximisation and the Act of Choice, Econometrica, Vol. 65, Num. 4.

UNDP (2010) Human Development Report. The Real Wealth of Nations: Pathways to human Development.