Beyond GNP and Current Beyond GNP and Current HDI: HDI: An Overview of The An Overview of The Capabilities Measurement Capabilities Measurement ProjectProject

Paul AnandPaul AnandEconomics, The Open Economics, The Open University andUniversity andHERC, Oxford UniversityHERC, Oxford University

Oxford University Workshop on Oxford University Workshop on Measurement of Freedom May 2008Measurement of Freedom May 2008

Open University and University of PaviaOpen University and University of PaviaWorkshop on Capabilities and Health, Workshop on Capabilities and Health,

Pavia 2008Pavia 2008

AHRB Funded WorkAHRB Funded Work

Key collaborators:Key collaborators: Ian Carter, Universita di PaviaIan Carter, Universita di Pavia Keith Dowding, London School of EconomicsKeith Dowding, London School of Economics Francesco Guala, Exeter UniversityFrancesco Guala, Exeter University Martin van Hees, Groningen UniversiteitMartin van Hees, Groningen Universiteit Graham Hunter, The Open UniversityGraham Hunter, The Open University

with help from Maria Sigala (Oxford), Ingrid with help from Maria Sigala (Oxford), Ingrid Robeyns (Leiden), Ron Smith (Birkbeck) and Robeyns (Leiden), Ron Smith (Birkbeck) and Cristina Santos (UCL/Open) and Amartya Cristina Santos (UCL/Open) and Amartya Sen!Sen!

Some publicationsSome publications

EconomicaEconomicaHealth EconomicsHealth EconomicsJournal of Health EconomicsJournal of Health EconomicsSocial Science and MedicineSocial Science and MedicineSocial Indicators ResearchSocial Indicators ResearchJournal of Medical EthicsJournal of Medical EthicsJournal of Human Development (forthcoming)Journal of Human Development (forthcoming)Chapter in Festschrift for Amartya Sen Chapter in Festschrift for Amartya Sen

Arguments for a Better World, OUP, Basu Arguments for a Better World, OUP, Basu and Kanbur, (forthcoming) and Kanbur, (forthcoming)

MotivationMotivation

Problems with Expected Utility Problems with Expected Utility TheoryTheory

Challenges to National Income Challenges to National Income Measurement (work in UK and OECD)Measurement (work in UK and OECD)

Operationalising capabilities Operationalising capabilities approach in high income countriesapproach in high income countries

National Income Accounting

WilliamPetty

1600s RichardStone

1930son

Environ-mental

Criticismsof GDP

1970s SocialIndicatorsMovement

1980s on

AmartyaSen

CapabilitiesandHDI

1985/90-

Limits to Gross National Limits to Gross National Product per capitaProduct per capita Ignores defensive expendituresIgnores defensive expenditures Ignores value of household workIgnores value of household work Ignores differences in needsIgnores differences in needs Emphasises material affluence (eg ignores qol at work, rights Emphasises material affluence (eg ignores qol at work, rights

violations)violations)

Measures monetary value of production or cost of consumption but Measures monetary value of production or cost of consumption but measurement of human welfare could be improvedmeasurement of human welfare could be improved

GDPGDPSatellite Accounts, Social Accounting Matrices (non-monetary Satellite Accounts, Social Accounting Matrices (non-monetary indicators as complements)indicators as complements)

HDIHDIMore dimensions, breakdownsMore dimensions, breakdowns

Limits to Gross National Limits to Gross National ProductProduct

Capabilities Measurement Capabilities Measurement Project (Summary to Date)Project (Summary to Date)

Phase I (2000-2006)Phase I (2000-2006)primary and secondary dataprimary and secondary datadevise methodology for capability assessmentdevise methodology for capability assessmentconduct national UK survey using OCAPconduct national UK survey using OCAPexplore some econometric issues associated with use of explore some econometric issues associated with use of capability datacapability data

Phase II (2006-Phase II (2006-extending applications of capabilities measurement (OCAP extending applications of capabilities measurement (OCAP family)family)

short form version (Glasgow)short form version (Glasgow)Spanish translation (Buenos Aires)Spanish translation (Buenos Aires)further applications (e.g. mental health in Oxford, further applications (e.g. mental health in Oxford,

housing in housing in social policy) analysissocial policy) analysis

Some Early WorkSome Early Work

Human Development IndexHuman Development Index

Schokkaert and van Ootegem (1990)Schokkaert and van Ootegem (1990) Enrica Chiappero Martinetti (1994, 2000)Enrica Chiappero Martinetti (1994, 2000) Laderchi (1997)Laderchi (1997) Kuklys (2005)Kuklys (2005)

Brandolini and D’Alessio (1999)Brandolini and D’Alessio (1999)

““The purpose is to assess the operational content of the approach ie The purpose is to assess the operational content of the approach ie the empirical methods to measure functionings and capabilities…the empirical methods to measure functionings and capabilities…much of what one can do depends the available data….we discussed much of what one can do depends the available data….we discussed the practical difficulties of moving to capabilities and proposed to the practical difficulties of moving to capabilities and proposed to remain in the (refined) functionings space.”remain in the (refined) functionings space.”

Source: Plenary paper given to the International Economics Source: Plenary paper given to the International Economics Association Congress, Buenos AiresAssociation Congress, Buenos Aires

Theory (Sen 1985 pp11-Theory (Sen 1985 pp11-4)4)ui = hi(.)ui = hi(.)ui is ‘happiness enjoyed’ui is ‘happiness enjoyed’hi (fi(c(xi)))hi (fi(c(xi)))

xi is vector of commodities xi is vector of commodities possessed by ipossessed by i

c(.) converts commodity vector c(.) converts commodity vector into vector of into vector of characteristicscharacteristics

fi(.) reflects one pattern of use fi(.) reflects one pattern of use Fi Fi

““Qi represents the freedom a Qi represents the freedom a person has in terms of the person has in terms of the choice of functionings, choice of functionings, given his personal features given his personal features Fi…and his command over Fi…and his command over commodities Xi.”commodities Xi.”

Theory (Sen 1985 pp11-Theory (Sen 1985 pp11-4)4)ui = hi(.)ui = hi(.)ui is ‘happiness enjoyed’ui is ‘happiness enjoyed’hi (fi(c(xi)))hi (fi(c(xi)))

xi is vector of commodities possessed by ixi is vector of commodities possessed by ic(.) converts commodity vector into vector of c(.) converts commodity vector into vector of

characteristicscharacteristicsfi(.) reflects one pattern of use fi(.) reflects one pattern of use Fi Fi

““Qi represents the freedom a person has in terms of the Qi represents the freedom a person has in terms of the choice of functionings, given his personal features choice of functionings, given his personal features Fi…and his command over commodities Xi.”Fi…and his command over commodities Xi.”

Our approachOur approach1. Elicit indicators of Qi, Ci,j where j = 1…60+1. Elicit indicators of Qi, Ci,j where j = 1…60+2. Estimate lsi = hs(Ci,j)2. Estimate lsi = hs(Ci,j)where s in hs is null or allows only partial where s in hs is null or allows only partial heterogeneityheterogeneity

A. Anand and van Hees A. Anand and van Hees (2006)(2006)

Question TypesQuestion TypesAchievements and ScopeAchievements and ScopePerceived distribution of scopePerceived distribution of scope

DomainsDomainsHappinessHappinessSuccessSuccessHealthHealthIntellectual StimulationIntellectual StimulationSocial RelationsSocial RelationsEnvironmentsEnvironmentsPersonal IntegrityPersonal IntegrityOverall OptionsOverall Options

ModelsModelsOverall Options SatisfactionOverall Options SatisfactionIndividual AchievementsIndividual Achievements

QuestionsQuestions

a.a. Generally, my life is happy (strongly agree...)Generally, my life is happy (strongly agree...)b.b. I feel the scope to seek happiness in my life is I feel the scope to seek happiness in my life is

(very good…)(very good…)c. The proportion of the population who have severely limited c. The proportion of the population who have severely limited

opportunities to seek happiness is (0-9%,…)opportunities to seek happiness is (0-9%,…)

a. I have satisfying social relations (strongly agree…)a. I have satisfying social relations (strongly agree…)b. I feel the scope to form satisfying social relations in my life is b. I feel the scope to form satisfying social relations in my life is

(very good…)(very good…)c. The proportion of the population who have severely limited c. The proportion of the population who have severely limited

opportunities to form satisfying social relations is (0-9%)opportunities to form satisfying social relations is (0-9%)

a. I live a health life for my age (strongly agree…)a. I live a health life for my age (strongly agree…)b. I feel the scope to live a healthy life for my age is (very good…)b. I feel the scope to live a healthy life for my age is (very good…)c. The proportion of the population who have severely limited c. The proportion of the population who have severely limited

opportunities to live healthy lives for their age is (0-9%)opportunities to live healthy lives for their age is (0-9%)

Some ConclusionsSome ConclusionsEach achievement is a function of its respective Each achievement is a function of its respective

capabilitycapability

Estimates of other capabilities are often anchored Estimates of other capabilities are often anchored on own capabilities with notable exceptionson own capabilities with notable exceptions

Greatest scope: health/environmentGreatest scope: health/environmentLeast scope: social relations/personal integrityLeast scope: social relations/personal integrity

Issues to be AddressedIssues to be Addressed Sample SizeSample Size Secondary DataSecondary Data Question TypeQuestion Type

B. Anand Hunter and B. Anand Hunter and Smith (2005) Smith (2005) Social Social Indicators ResearchIndicators Research

AimAim

Explore links between Explore links between satisfaction and capabilities satisfaction and capabilities using BHPS datausing BHPS data

Econometric ApproachEconometric Approach

s = a + s = a + bCbC + e + e

s = a + s = a + bCbC + + cPcP + e + e

pjhat = sj-sjhat j=10 life domainspjhat = sj-sjhat j=10 life domains

s = a + s = a + bCbC + + cPhatcPhat + e + e

Hausman Wu Test for endogeneity: c=0 Hausman Wu Test for endogeneity: c=0

Adaptation IssuesAdaptation Issues

If Complete and Instantaneous ‘Goods’ would If Complete and Instantaneous ‘Goods’ would have no observable impact on life have no observable impact on life satisfactionsatisfaction

There is some evidence of adaptation There is some evidence of adaptation especially to improvements so capabilities especially to improvements so capabilities which impact life satisfaction are only the which impact life satisfaction are only the utilitarian capabilitiesutilitarian capabilities

Two ConclusionsTwo Conclusions

Person specific effects significantPerson specific effects significant

Secondary data exists but is sparse Secondary data exists but is sparse

AHRB Project to Measure AHRB Project to Measure CapabilitiesCapabilities

Research QuestionResearch Question

Can we measure capabilities Can we measure capabilities across a wide spectrum of human across a wide spectrum of human domains within the conventions domains within the conventions applicable to national household applicable to national household and social surveys?and social surveys?

Framework for QuestionsFramework for Questions

Nussbaum’s ListNussbaum’s List

ComprehensiveComprehensive

Robust (similar to others)Robust (similar to others)

Don’t require universal claimsDon’t require universal claims

Has normative groundingHas normative grounding

Question CategoriesQuestion Categories

LifeLife Bodily HealthBodily Health Bodily IntegrityBodily Integrity Senses Imagination and ThoughtSenses Imagination and Thought EmotionsEmotions Practical ReasonPractical Reason AffiliationAffiliation NatureNature LeisureLeisure Control over one’s Environment Control over one’s Environment

Bodily HealthBodily Health

Being able to have good health, Being able to have good health, including reproductive health; to be including reproductive health; to be adequately nourished; to have adequately nourished; to have adequate shelteradequate shelter

• 2 Bodily Health• Being able to have good health, • BHEALTH (Q57)• Does your health in any way limit your daily activities compared to most people of your age?• Yes, No. BHPS• including reproductive health;• BREPRODUCT (Q61)• Are you able to have children?• Yes, No, Don't know, Prefer not to answer• If No• Please indicate the reason(s) you are not able to have children. • I cannot have children because of: Q62_1 My age; Q62_2 I have had a vasectomy / hysterectomy; Q62-3 Another medical

condition; Q62_4 My partner being unable / unwilling; Q62_5 Another reason; Q62_6 Prefer not to answer.• to be adequately nourished • BNOURISH (Q59)• Do you eat fresh meat, chicken or fish at least twice a week? • Yes/No BHPS• If No• Q60• For which of the following reasons, if any, do you NOT eat fresh meat, chicken or fish at least twice a week? [Please tick

all that apply]• I am vegetarian/vegan, I cannot afford to, I do not like eating fresh meat, chicken or fish that often, I do not have time to prepare

fresh food., Some other reason• to have adequate shelter.• BSHELTER (Q85)• Is your current accommodation adequate or inadequate for your current needs?• More than adequate, Adequate, Inadequate, Very inadequate• BCANMOVE (Q86)• Are you prevented from moving home for any reason?• Yes, No• If yes• Q87• What prevents you from moving home? • Lack of money/finances; The Council would be unlikely to re-house me; Family responsibilities and/or schooling; I could not move

out of my current accommodation because of some other reason

HEALTH STATUSHEALTH STATUS

Does your health in any way Does your health in any way limit limit your daily activitiesyour daily activities compared to compared to most people of your age?most people of your age?

Yes, No. Yes, No. BHPSBHPS

REPRODUCTIONREPRODUCTION

Are you able to have children? Are you able to have children? NEWNEWYes, No, Don't know, Prefer not to answerYes, No, Don't know, Prefer not to answer

If no please indicate the reason(s) you are not able to If no please indicate the reason(s) you are not able to have childrenhave children

I cannot have children because of: I cannot have children because of: Q62_1 My ageQ62_1 My ageQ62_2 I have had a vasectomy / hysterectomyQ62_2 I have had a vasectomy / hysterectomyQ62_3 Another medical conditionQ62_3 Another medical conditionQ62_4 My partner being unable / unwillingQ62_4 My partner being unable / unwillingQ62_5 Another reasonQ62_5 Another reasonQ62_6 Prefer not to answerQ62_6 Prefer not to answer

NOURISHMENTNOURISHMENT

Do you eat fresh meat, chicken or fish at least twice a week? Do you eat fresh meat, chicken or fish at least twice a week?

Yes/No Yes/No BHPS with additions BHPS with additions

If NoIf No(Q60)(Q60)For which of the following reasons, if any, do you NOT eat For which of the following reasons, if any, do you NOT eat

fresh meat, chicken or fish at least twice a week? [Please fresh meat, chicken or fish at least twice a week? [Please tick all that apply]tick all that apply]

I am vegetarian/veganI am vegetarian/veganI cannot afford toI cannot afford toI do not like eating fresh meat, chicken or fish that often I do not like eating fresh meat, chicken or fish that often I do not have time to prepare fresh foodI do not have time to prepare fresh foodSome other reasonSome other reason

ADEQUATE SHELTERADEQUATE SHELTER

BSHELTER (Q85)BSHELTER (Q85)Is your current accommodation adequate or inadequate for your Is your current accommodation adequate or inadequate for your

current needs?current needs?More than adequate, Adequate, Inadequate, Very inadequateMore than adequate, Adequate, Inadequate, Very inadequate

BCANMOVE (Q86)BCANMOVE (Q86)Are you prevented from moving home for any reason?Are you prevented from moving home for any reason?

Yes, NoYes, No

If yes If yes (Q87)(Q87)What prevents you from moving home? What prevents you from moving home?

Lack of money/finances; Lack of money/finances; The Council would be unlikely to re-house me; The Council would be unlikely to re-house me; Family responsibilities and/or schooling; Family responsibilities and/or schooling; I could not move out of my current accommodation because of some other I could not move out of my current accommodation because of some other reasonreason

4 Types of Capability 4 Types of Capability IndicatorsIndicators

Type 1. OpportunitiesType 1. Opportunities

Type 2. AbilitiesType 2. Abilities

Type 3. ConstraintsType 3. Constraints

Type 4. Functionings + Reasons/ Type 4. Functionings + Reasons/ UniversalityUniversality

AnalysesAnalyses

Sex/age differences + links to Sex/age differences + links to happiness for all Capabilitieshappiness for all Capabilities

Violent crime, gender inequalities, Violent crime, gender inequalities, links to income, personality and life links to income, personality and life satisfactionsatisfaction

Health as a determinant of capabilityHealth as a determinant of capability

Dependent Variable SWB2 Capability Variables Coeff. S.Error t-Stat Prob. BSHELTER 0.27 0.09 2.93 0.00 CDASALTP -0.17 0.08 -2.01 0.04 CSEXSAT 0.25 0.07 3.33 0.00 ELOVE 0.08 0.03 3.03 0.00 EFEELING 0.11 0.03 4.14 0.00 ESTRAIN -0.13 0.04 -3.24 0.00 FGOOD 0.09 0.03 3.17 0.00 FPLAN 0.12 0.02 5.10 0.00 FEVALUATE -0.06 0.03 -2.15 0.03 FROLE 0.36 0.05 6.89 0.00 GCONCERN 0.09 0.03 2.69 0.01 GHOLIDAY 0.27 0.08 3.28 0.00 GWORTH 0.35 0.04 7.86 0.00 JRACEWP -0.54 0.17 -3.18 0.00 JRACEWF 0.08 0.03 2.26 0.02 JSEARCH -0.05 0.02 -2.20 0.03 JSKILLSW 0.08 0.03 2.61 0.01 Adjusted R-squared 0.53 Akaike info criterion 2.62 Schwarz criterion 2.73 Durbin-Watson stat 1.83

Gender DifferencesDependent Variable SWB2 Female Male Variable Coeff. S. Error t_Stat. Prob. Coeff. S. Error t_Stat. Prob. BSHELTER 0.39 0.13 3.05 0.00 0.02 0.15 0.14 0.89 CDASALTP -0.18 0.10 -1.75 0.08 -0.18 0.17 -1.10 0.27 CSEXSAT 0.14 0.11 1.29 0.20 0.29 0.11 2.70 0.01 ELOVE 0.12 0.03 3.54 0.00 0.02 0.04 0.62 0.54 EFEELING 0.04 0.04 1.00 0.32 0.16 0.04 3.91 0.00 ESTRAIN -0.04 0.05 -0.69 0.49 -0.16 0.06 -2.44 0.02 FGOOD 0.16 0.04 3.93 0.00 0.05 0.04 1.37 0.17 FPLAN 0.11 0.04 3.17 0.00 0.09 0.04 2.52 0.01 FEVALU8 -0.03 0.04 -0.90 0.37 -0.02 0.04 -0.62 0.54 FROLE 0.41 0.07 5.91 0.00 0.30 0.08 3.64 0.00 GCONCERN 0.13 0.05 2.60 0.01 0.08 0.06 1.32 0.19 GHOLIDAY 0.12 0.11 1.09 0.28 0.27 0.14 2.00 0.05 GWORTH 0.32 0.06 5.09 0.00 0.28 0.07 3.92 0.00 JRACEWP -0.23 0.26 -0.88 0.38 -0.73 0.23 -3.24 0.00 JRACEWF 0.04 0.05 0.87 0.39 0.07 0.05 1.56 0.12 MDSWORKF -0.40 0.14 -2.89 0.00 -0.11 0.15 -0.73 0.47 JSEARCH -0.03 0.04 -0.87 0.38 -0.05 0.03 -1.37 0.17 JSKILLSW 0.02 0.04 0.44 0.66 0.11 0.04 2.63 0.01 MWORK -0.03 0.23 -0.13 0.90 -0.75 0.25 -3.02 0.00 MAGE -0.03 0.02 -1.92 0.06 0.01 0.02 0.80 0.42 MAGE2 0.00 0.00 1.19 0.24 0.00 0.00 -0.58 0.56 MGHI 0.03 0.04 0.89 0.37 0.10 0.04 2.30 0.02 MRSOUTH -0.16 0.14 -1.14 0.25 -0.17 0.15 -1.14 0.26 MRMIDWLS 0.14 0.14 0.99 0.32 -0.11 0.15 -0.71 0.48 MRNORTH -0.13 0.13 -1.00 0.32 -0.12 0.14 -0.82 0.41 MRSCOT 0.13 0.18 0.73 0.47 -0.12 0.18 -0.63 0.53 PXTRAVRT 0.08 0.03 2.39 0.02 0.03 0.04 0.78 0.44 PAGREEBL -0.06 0.04 -1.34 0.18 0.00 0.05 -0.08 0.93 PCONSCS -0.07 0.04 -1.80 0.07 0.00 0.04 0.01 0.99 PSTABLE 0.13 0.04 3.52 0.00 0.14 0.04 3.32 0.00 POPEN -0.01 0.04 -0.32 0.75 -0.05 0.05 -1.13 0.26 Mean dependent var 4.82 4.80 Adjusted R-squared 0.58 0.54 Akaike info criterion 2.57 2.64 Schwarz criterion 2.87 2.98 Durbin-Watson stat 1.67 1.65

Violent Crime, Gender Violent Crime, Gender Inequalities and Life Inequalities and Life SatisfactionSatisfaction

DataData Past Experience/Future Expectations of domestic, sexual and other forms Past Experience/Future Expectations of domestic, sexual and other forms

of assaultof assault Safety in local area during day and nightSafety in local area during day and night

AnalysisAnalysis Describe experience and differences between sexesDescribe experience and differences between sexes Correlations between all indicatorsCorrelations between all indicators

Examine causes of perceived future riskExamine causes of perceived future risk Links between violence and life satisfactionLinks between violence and life satisfaction Particular link between domestic violence and income povertyParticular link between domestic violence and income poverty

Health and Capability Health and Capability PovertyPoverty

DataData Does health limit your daily activities for your ageDoes health limit your daily activities for your age All capabilities, life satisfaction and socio-economic covariatesAll capabilities, life satisfaction and socio-economic covariates

AnalysisAnalysis Capability differences by health statusCapability differences by health status

Capabilities as a function of health, income and personality (binary Capabilities as a function of health, income and personality (binary and ordered logit)and ordered logit)

Capability profiles as a function of health income and personality Capability profiles as a function of health income and personality (latent class)(latent class)

BC

AN

MO

VE

0-1

Mean

BN

OR

ISH

0-1

Mean

BS

HLT

ER

0-1

Mean

1.0

0.8

0.6

0.4

0.2

0.0

Cluster1Cluster2Cluster3Cluster4Cluster5Cluster6

GA

GE

F0-1

Mean

GA

GE

P0-1

Mean

GC

ON

CR

N0-1

Mean

GG

EN

DF

0-1

Mean

GG

EN

DP

0-1

Mean

GH

OLD

AY

0-1

Mean

GIM

GN

E0-1

Mean

GM

EA

L0-1

Mean

GR

AC

EF

0-1

Mean

GR

AC

EP

0-1

Mean

GR

ELF

0-1

Mean

GR

ELP

0-1

Mean

GS

EX

OR

F0-1

Mean

GS

EX

OR

P0-1

Mean

GW

OR

TH

0-1

Mean

1.0

0.8

0.6

0.4

0.2

0.0

Cluster1Cluster2Cluster3Cluster4Cluster5Cluster6

Table 6c Average Covariate Characteristics by Cluster

Cluster 1 Cluster 2 Cluster 3 Cluster 4 Cluster 5 Cluster 6

cluster size 23.7% 20.79% 19.05% 18.30% 10.13% 8.02%

HS 78.49% 82.96% 85.74% 61.45% 67.95% 47.01%

mghi 3.19 3.31 3.33 2.93 2.86 2.32

pagreeable 4.73 4.88 5.50 4.93 5.23 4.41

pconscientious 5.12 5.53 5.87 4.9 5.42 4.7

popen 4.86 4.58 5.36 4.60 5.55 5.22

pstable 4.47 4.87 5.32 3.61 4.70 3.41

pextravert 4.09 4.07 4.84 3.53 4.14 3.51

mage 42.19 46.17 50.63 39.65 47.14 38.14

mmale 59.73% 54.22% 45.55% 40.73% 10.64% 38.41%

mrmidwls 25.05% 29.76% 20.58% 18.30% 18.99% 13.47%

mrnorth 25.15% 28.93% 28.50% 24.78% 32.82% 38.71%

mrscot 10.25% 8.05% 10.64% 12.77% 7.02% 3.45%

mrsouth 16.61% 21.57% 27.10% 24.48% 13.09% 29.58%

Table 6b Wald Statistics for Health Status and Other Predictors of Class Membership in a Six Latent Class Model

Covariate Model Diagnostic Statistics

Health Status

51.97, 5.50e-10

31.5533, 7.30e-06

42.5177, 4.60e-08

25.6563, 0.0001

30.7661, 1.00e-05

Household Income

31.0012, 9.30e-06

21.9757, 0.00053

26.8417, 6.10e-05

12.0814, 0.034

20.9303, 0.00083

Controls for Age

No Yes

Personality: pagree pconsc

popen pstable pxtravt

29.036, 2.3e- 05 24.1576, 0.0002

55.0846, .3e-10 49.8809, 1.50e-

09 19.8605, 0.0013

29.3056, 2.00e-

05

21.8305, 0.00056 60.14, 1.10e-11 50.2556, 1.20e-

09 24.708, 0.00016

Controls for Regions

No Yes

Notes Cell entries indicate the value of the Wald statistic and its associated p value respectively. Controls for age comprise age and its square. Coefficients for all models in Table 3 are available on request.

Obesity and Opportunity Set Obesity and Opportunity Set Dynamics:Dynamics:

From Rational Choice to a New From Rational Choice to a New Kind of Market Failure?Kind of Market Failure?

Technological ChangeTechnological Change ‘‘Optimal Fattening’Optimal Fattening’ Social NormsSocial Norms

Obesogenic Environments as Capabilities we Obesogenic Environments as Capabilities we value negatively value negatively

CompetitionCompetitionInappropriate Choice SetsInappropriate Choice SetsDecision utilities Decision utilities ≠ experienced utilities or ≠ experienced utilities or best interest utilitiesbest interest utilities

Obesity and Opportunity Set Obesity and Opportunity Set Dynamics:Dynamics:

From Rational Choice to Market From Rational Choice to Market FailureFailure

Initial Condition: Initial Condition: S={a,b}, D/S={a}, aPb for all bS={a,b}, D/S={a}, aPb for all b

Competition and new feasible set: Competition and new feasible set: S’={a,b1,b2}, D/S’={b1} (for axiomatics see Suzumura and Xu S’={a,b1,b2}, D/S’={b1} (for axiomatics see Suzumura and Xu

forthcoming)forthcoming)

Result: Decision Utility Result: Decision Utility ≠ Best Interest/Experienced Utility ≠ Best Interest/Experienced Utility (Kahneman et al QJE 1997)(Kahneman et al QJE 1997)

Conclusion: Inappropriate Choice Sets can result from free Conclusion: Inappropriate Choice Sets can result from free individual choices + competitive markets (New Kind of Market individual choices + competitive markets (New Kind of Market Failure – applies also to debt)Failure – applies also to debt)

Capabilities Capabilities Measurement – Some Measurement – Some Findings to DateFindings to DateIt IS possible to measure capabilities…It IS possible to measure capabilities…Some secondary data exists but more can be Some secondary data exists but more can be

generated (our work identifies steps)generated (our work identifies steps)Sen’s 3 key equations can be estimatedSen’s 3 key equations can be estimatedExperienced utility (welfare) is highly multi-Experienced utility (welfare) is highly multi-

dimensionaldimensionalCapability Inequalities and heterogeneity (eg Capability Inequalities and heterogeneity (eg

personality) can be foundpersonality) can be foundHealth is strongly related to capability Health is strongly related to capability

deprivationdeprivation

Finally…Finally…

Future plans:Future plans:discriminationdiscriminationexpand questions in leisure/nature/workexpand questions in leisure/nature/workexpand sub-population coverage to make more detailed expand sub-population coverage to make more detailed use of response categories (disability/reproductive use of response categories (disability/reproductive choice/children)choice/children)extend applications beyond England, Scotland and extend applications beyond England, Scotland and ArgentinaArgentina

In health;In health;extend EQ5extend EQ5do work on access to caredo work on access to carecomplete analysis of child developmentcomplete analysis of child development