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Estimating Basic Capabilities: A Structural Equation Model Applied to Bolivia

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  • Krishnakumar, Jaya
  • Ballon, Paola

Abstract

Summary This paper proposes a suitable theoretical framework for operationalizing the capability approach using the latent variable methodology. A structural equation model is specified to account for the unobservable and multidimensional aspects characterizing the concept of human development and to capture the mutual influence among different capabilities. The model is applied to Bolivian data for studying two "basic" capability domains relating to children: knowledge and living conditions. Individual capability indices are constructed from the estimation results and their empirical distributions analyzed. Our results show a strong interdependence between the above capabilities and confirm the role of exogenous factors in their determination.

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Bibliographic Info

Article provided by Elsevier in its journal World Development.

Volume (Year): 36 (2008)
Issue (Month): 6 (June)
Pages: 992-1010

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Handle: RePEc:eee:wdevel:v:36:y:2008:i:6:p:992-1010

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Web page: http://www.elsevier.com/locate/worlddev

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References

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  1. George Psacharopoulos & Harry Anthony Patrinos, 1997. "Family size, schooling and child labor in Peru - An empirical analysis," Journal of Population Economics, Springer, vol. 10(4), pages 387-405.
  2. Jaya Krishnakumar, 2007. "Going Beyond Functionings to Capabilities: An Econometric Model to Explain and Estimate Capabilities," Journal of Human Development and Capabilities, Taylor & Francis Journals, vol. 8(1), pages 39-63.
  3. Appleton, S., 2000. "Education and Health at the Household Level in Sub-Saharan Africa," Papers 33, Chicago - Graduate School of Business.
  4. Dreze, Jean & Sen, Amartya, 2002. "India: Development and Participation," OUP Catalogue, Oxford University Press, edition 2, number 9780199257492.
  5. Yongsheng Xu, 2002. "Functioning, capability and the standard of living - an axiomatic approach," Economic Theory, Springer, vol. 20(2), pages 387-399.
  6. Jaya Krishnakumar & A. Nagar, 2008. "On Exact Statistical Properties of Multidimensional Indices Based on Principal Components, Factor Analysis, MIMIC and Structural Equation Models," Social Indicators Research, Springer, vol. 86(3), pages 481-496, May.
  7. Maria L. Di Tommaso & Martin Raiser & Melvyn Weeks, 2007. "Home Grown or Imported? Initial Conditions, External Anchors and the Determinants of Institutional Reform in the Transition Economies," Economic Journal, Royal Economic Society, vol. 117(520), pages 858-881, 04.
  8. Di Tommaso, Maria Laura, 2007. "Children capabilities: A structural equation model for India," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 36(3), pages 436-450, June.
  9. Ledyard Tucker & Charles Lewis, 1973. "A reliability coefficient for maximum likelihood factor analysis," Psychometrika, Springer, vol. 38(1), pages 1-10, March.
  10. George Psacharopoulos, 1997. "Child labor versus educational attainment Some evidence from Latin America," Journal of Population Economics, Springer, vol. 10(4), pages 377-386.
  11. Klasen, Stephan, 2000. "Measuring Poverty and Deprivation in South Africa," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 46(1), pages 33-58, March.
  12. Muthen, Bengt, 1983. "Latent variable structural equation modeling with categorical data," Journal of Econometrics, Elsevier, vol. 22(1-2), pages 43-65.
  13. Pattanaik, Prasanta K. & Xu, Yongsheng, 2000. "On Ranking Opportunity Sets in Economic Environments," Journal of Economic Theory, Elsevier, vol. 93(1), pages 48-71, July.
  14. Mozaffar Qizilbash, 2002. "A note on the measurement of poverty and vulnerability in the South African context," Journal of International Development, John Wiley & Sons, Ltd., vol. 14(6), pages 757-772.
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Cited by:
  1. Jaya Krishnakumar & A. Nagar, 2008. "On Exact Statistical Properties of Multidimensional Indices Based on Principal Components, Factor Analysis, MIMIC and Structural Equation Models," Social Indicators Research, Springer, vol. 86(3), pages 481-496, May.
  2. Le–Le Zou, 2012. "The impacting factors of vulnerability to natural hazards in China: an analysis based on structural equation model," Natural Hazards, International Society for the Prevention and Mitigation of Natural Hazards, vol. 62(1), pages 57-70, May.
  3. Hasan, Hamid, 2013. "Capabilities vis-a-vis Happiness: Evidence from Pakistan," MPRA Paper 44892, University Library of Munich, Germany.
  4. Diego Battiston & Guillermo Cruces & Luis Felipe Lopez Calva & Maria Ana Lugo & Maria Emma Santos, 2009. "Income and Beyond: Multidimensional Poverty in six Latin American countries," CEDLAS, Working Papers 0090, CEDLAS, Universidad Nacional de La Plata.
  5. Sabina Alkire, 2011. "Multidimensional Poverty and its Discontents," OPHI Working Papers ophiwp046, Queen Elizabeth House, University of Oxford.
  6. Agbodji, Akoete Ega & Batana, Yele Maweki & Ouedraogo, Denis, 2013. "Gender inequality in multidimensional welfare deprivation in west Africa : the case of Burkina Faso and Togo," Policy Research Working Paper Series 6522, The World Bank.
  7. Paul Ningaye & Tiomela Alexi & Takoutio Virginie, 2013. "Multi-Poverty in Cameroon: A Structural Equation Modeling Approach," Social Indicators Research, Springer, vol. 113(1), pages 159-181, August.
  8. Ramzi Mabsout, 2011. "Capability and Health Functioning in Ethiopian Households," Social Indicators Research, Springer, vol. 101(3), pages 359-389, May.
  9. Maki Michinaka & Takahiro Ito, 2010. "Multidimensional Poverty Rankings based on Pareto Principle: A Practical Extension," Global COE Hi-Stat Discussion Paper Series gd10-139, Institute of Economic Research, Hitotsubashi University.
  10. Paul Ningaye & Yemedjeu Tiomela & Virginie Takoutio Feudjio, 2011. "Multi-Poverty in Cameroon: a Dimensional Scores Approach. Multi-pauvreté au Cameroun: Approche par les scores dimensionnels," Working Papers PMMA 2011-01, PEP-PMMA.
  11. repec:mod:depeco:0009 is not listed on IDEAS

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