Social Welfare Functions and Development

Measurement and Policy Applications

Business & Finance, Economics, Econometrics, Theory of Economics
Cover of the book Social Welfare Functions and Development by Nanak Kakwani, Hyun Hwa Son, Palgrave Macmillan UK
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Author: Nanak Kakwani, Hyun Hwa Son ISBN: 9781137583253
Publisher: Palgrave Macmillan UK Publication: June 30, 2016
Imprint: Palgrave Macmillan Language: English
Author: Nanak Kakwani, Hyun Hwa Son
ISBN: 9781137583253
Publisher: Palgrave Macmillan UK
Publication: June 30, 2016
Imprint: Palgrave Macmillan
Language: English

Nanak Kakwani and Hyun Hwa Son make use of social welfare functions to derive indicators of development relevant to specific social objectives, such as poverty- and inequality-reduction. Arguing that the measurement of development cannot be value-free, the authors assert that if indicators of development are to have policy relevance, they must be assessed on the basis of the social objectives in question.

This study develops indicators that are sensitive to both the level and the distribution of individuals’ capabilities. The idea of the social welfare function, defined in income space, is extended to the concept of the social well-being function, defined in capability space.

Through empirical analysis from selected developing countries, with a particular focus on Brazil, the authors shape techniques appropriate to the analysis of development in different dimensions. The focus of this evidence-based policy analysis is to evaluate alternative policies affecting the capacities of people to enjoy a better life.

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Nanak Kakwani and Hyun Hwa Son make use of social welfare functions to derive indicators of development relevant to specific social objectives, such as poverty- and inequality-reduction. Arguing that the measurement of development cannot be value-free, the authors assert that if indicators of development are to have policy relevance, they must be assessed on the basis of the social objectives in question.

This study develops indicators that are sensitive to both the level and the distribution of individuals’ capabilities. The idea of the social welfare function, defined in income space, is extended to the concept of the social well-being function, defined in capability space.

Through empirical analysis from selected developing countries, with a particular focus on Brazil, the authors shape techniques appropriate to the analysis of development in different dimensions. The focus of this evidence-based policy analysis is to evaluate alternative policies affecting the capacities of people to enjoy a better life.

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