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Using Efficiency Analysis to Measure Individual Well-Being with an Illustration for Catalonia

  • Ramos, Xavi

    ()

    (Universitat Autònoma de Barcelona)

This paper shows how distance functions, a tool typically employed in production economics to measure the distance between a set of inputs and a set of outputs, can be employed to approximate a composite measure encompassing the many dimensions of well-being. It also illustrates how to implement the methodology originally put forth by Lovell et al. (1994), using new data for Catalonia. We draw policy implications and critically appraise the discussed methodology suggesting avenues for further research.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 1748.

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Length: 44 pages
Date of creation: Sep 2005
Date of revision:
Publication status: published in: Nanak Kakwani and Jacques Silver (eds.): Quantitative Approaches to Multidimensional Poverty Measure, Palgrave Macmillan, 2007
Handle: RePEc:iza:izadps:dp1748
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  1. Wilson, Chris M. & Oswald, Andrew J., 2005. "How Does Marriage Affect Physical and Psychological Health? A Survey of the Longitudinal Evidence," IZA Discussion Papers 1619, Institute for the Study of Labor (IZA).
  2. Robert Cummins, 1996. "The domains of life satisfaction: An attempt to order chaos," Social Indicators Research, Springer, vol. 38(3), pages 303-328, January.
  3. Alois Stutzer & Bruno S. Frey, . "Does Marriage Make People Happy, Or Do Happy People Get Married?," IEW - Working Papers 143, Institute for Empirical Research in Economics - University of Zurich.
  4. Greene, William H., 1980. "Maximum likelihood estimation of econometric frontier functions," Journal of Econometrics, Elsevier, vol. 13(1), pages 27-56, May.
  5. Xavier Ramos & Jacques Silber, 2005. "On The Application Of Efficiency Analysis To The Study Of The Dimensions Of Human Development ," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 51(2), pages 285-309, 06.
  6. Nolan, Brian & Whelan, Christopher T., 1996. "Resources, Deprivation, and Poverty," OUP Catalogue, Oxford University Press, number 9780198287858, March.
  7. Blanchflower, David G. & Oswald, Andrew J., 2004. "Well-being over time in Britain and the USA," Journal of Public Economics, Elsevier, vol. 88(7-8), pages 1359-1386, July.
  8. Ribar, David C., 2004. "What Do Social Scientists Know About the Benefits of Marriage? A Review of Quantitative Methodologies," IZA Discussion Papers 998, Institute for the Study of Labor (IZA).
  9. Bardasi, Elena & Taylor, Mark P., 2005. "Marriage and wages," ISER Working Paper Series 2005-01, Institute for Social and Economic Research.
  10. George A. Akerlof & Rachel E. Kranton, 2000. "Economics And Identity," The Quarterly Journal of Economics, MIT Press, vol. 115(3), pages 715-753, August.
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