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Applying a Non-parametric Efficiency Analysis to Measure Conversion Efficiency in Great Britain

  • Martin Binder
  • Tom Broekel

In the literature on Sen's capability approach, studies focusing on the empirical measurement of conversion factors are comparatively rare. We add to this field by adopting a measure of 'conversion efficiency' that captures the efficiency with which individuals convert their resources into achieved functioning. We use a non-parametric efficiency procedure borrowed from production theory and construct such a measure for a set of basic functionings, using data from the 2005 wave of the British Household Panel Survey. In Great Britain, 49.88% of the individuals can be considered efficient while the mean of the inefficient individuals reaches one-fifth less functioning achievement. An individual's conversion efficiency is positively affected by getting older, being self-employed, married, having no health problems and living in the London area. On the other hand, being unemployed, separated/divorced/widowed and (self-assessed) disabled decrease an individual's conversion efficiency.

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Article provided by Taylor & Francis Journals in its journal Journal of Human Development and Capabilities.

Volume (Year): 12 (2011)
Issue (Month): 2 ()
Pages: 257-281

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Handle: RePEc:taf:jhudca:v:12:y:2011:i:2:p:257-281
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