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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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  1. 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.
  2. Dreze, Jean & Sen, Amartya, 2002. "India: Development and Participation," OUP Catalogue, Oxford University Press, edition 2, number 9780199257492, September.
  3. Yongsheng Xu, 2002. "Functioning, capability and the standard of living - an axiomatic approach," Economic Theory, Springer, vol. 20(2), pages 387-399.
  4. 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.
  5. 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.
  6. George Psacharopoulos, 1997. "Child labor versus educational attainment Some evidence from Latin America," Journal of Population Economics, Springer, vol. 10(4), pages 377-386.
  7. 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.
  8. Ledyard Tucker & Charles Lewis, 1973. "A reliability coefficient for maximum likelihood factor analysis," Psychometrika, Springer, vol. 38(1), pages 1-10, March.
  9. 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.
  10. 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.
  11. Jaya Krishnakumar, 2007. "Going Beyond Functionings to Capabilities: An Econometric Model to Explain and Estimate Capabilities," Journal of Human Development and Capabilities, Taylor and Francis Journals, vol. 8(1), pages 39-63.
  12. Simon Appleton, 2000. "Education and health at the household level in sub-Saharan Africa," CID Working Papers 33, Center for International Development at Harvard University.
  13. Di Tommaso, Maria Laura, 2007. "Children capabilities: A structural equation model for India," The Journal of Socio-Economics, Elsevier, vol. 36(3), pages 436-450, June.
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Cited by:
  1. Sabina Alkire, 2011. "Multidimensional Poverty and its Discontents," OPHI Working Papers ophiwp046, Queen Elizabeth House, University of Oxford.
  2. 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.
  3. 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.
  4. Ramzi Mabsout, 2011. "Capability and Health Functioning in Ethiopian Households," Social Indicators Research, Springer, vol. 101(3), pages 359-389, May.
  5. 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.
  6. Anand, Paul & Krishnakumar, Jaya & Tran, Ngoc Bich, 2011. "Measuring welfare: Latent variable models for happiness and capabilities in the presence of unobservable heterogeneity," Journal of Public Economics, Elsevier, vol. 95(3-4), pages 205-215, April.
  7. repec:mod:depeco:0009 is not listed on IDEAS

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