Capability theory inspired tools for aiding policy design

Abstract

This paper aims at suggesting that welfare measurement could be based upon Sen’s capability approach (CA). This should allow establishing a “rational” framework improving how we aide the design and assessment of public policies. We propose the use of a multi-objective mathematical program as basis for measuring individual’s welfare and suggest that citizens with similar capabilities could be clustered together establishing targets for specific public policies aiming at improving or protecting the welfare on such well identified social groups.