A Bayesian framework for estimating human capabilities

B-Tier
Journal: World Development
Year: 2020
Volume: 129
Issue: C

Authors (2)

Henderson, Heath (Drake University) Follett, Lendie (not in RePEc)

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

The capabilities approach provides a rich framework for welfare assessment, but its practical relevance is limited by methodological difficulties associated with the measurement of human capabilities. We argue that, unlike existing approaches to capability estimation, Bayesian stochastic frontier analysis (BSFA) is consistent with the key features of the capabilities approach and thus provides a natural framework for estimating capabilities. Using simulated data, we show that BSFA outperforms the leading alternatives (e.g., structural equation models) in comparable settings. We further show that our approach is more flexible than the alternatives: BSFA can provide cardinal representations of entire capability sets and can be used with continuous, discrete, and multivariate outcomes. Finally, we provide an empirical illustration of our estimator by examining the impact of Uganda’s Youth Opportunities Program on the educational capabilities of children in the treated households.

Technical Details

RePEc Handle
repec:eee:wdevel:v:129:y:2020:i:c:s0305750x19305212
Journal Field
Development
Author Count
2
Added to Database
2026-02-02