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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.
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Citations

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Cited by:
  1. repec:mod:depeco:0009 is not listed on IDEAS
  2. 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.
  3. 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," Working Papers 142, ECINEQ, Society for the Study of Economic Inequality.
  4. 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.
  5. Sabina Alkire, 2011. "Multidimensional Poverty and its Discontents," OPHI Working Papers ophiwp046, Queen Elizabeth House, University of Oxford.
  6. 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.
  7. 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.
  8. 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.
  9. Elisabet Garriga, 2014. "Beyond Stakeholder Utility Function: Stakeholder Capability in the Value Creation Process," Journal of Business Ethics, Springer, vol. 120(4), pages 489-507, April.
  10. Hasan, Hamid, 2013. "Capabilities vis-a-vis Happiness: Evidence from Pakistan," MPRA Paper 44892, University Library of Munich, Germany.
  11. 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.
  12. Ramzi Mabsout, 2011. "Capability and Health Functioning in Ethiopian Households," Social Indicators Research, Springer, vol. 101(3), pages 359-389, May.

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