Over the past few years, there has been a steadily increasing interest on the part of economists in happiness research. We argue that reported subjective well-being is a satisfactory empirical approximation to individual utility and that happiness research is able to contribute important insights for economics. We report how the economic variables income, unemployment and inflation affect happiness as well as how institutional factors, in particular the type of democracy and the extent of government decentralization, systematically influence how satisfied individuals are with their life. We discuss some of the consequences for economic policy and for economic theory.

What Can Economists Learn from Happiness Research

This paper proposes a new methodology for multidimensional poverty measurement consisting of an identification method ρk that extends the traditional intersection and union approaches, and a class of poverty measures Mα. Our identification step employs two forms of cutoff: one within each dimension to determine whether a person is deprived in that dimension, and a second across dimensions that identifies the poor by ‘counting’ the dimensions in which a person is deprived. The aggregation step employs the FGT measures, appropriately adjusted to account for multidimensionality. The axioms are presented as joint restrictions on identification and the measures, and the methodology satisfies a range of desirable properties including decomposability. The identification method is particularly well suited for use with ordinal data, as is the first of our measures, the adjusted headcount ratio. We present some dominance results and an interpretation of the adjusted headcount ratio as a measure of unfreedom. Examples from the US and Indonesia illustrate our methodology.

Counting and Multidimensional Poverty Measurement

The two concepts — human rights and capabilities — go well with each other, so long as we do not try to subsume either concept entirely within the territory of the other. There are many human rights that can be seen as rights to particular capabilities. However, human rights to important process freedoms cannot be adequately analysed within the capability framework. Furthermore, both human rights and capabilities have to depend on the process of public reasoning. The methodology of public scrutiny draws on Rawlsian understanding of 'objectivity' in ethics, but the impartiality that is needed cannot be confined within the borders of a nation. Public reasoning without territorial confinement is important for both.

Human Rights and Capabilities

This study was well-received and widely discussed when it appeared in hardback in 1990. It is devoted to analysis of the enduring problem of hunger in the modern world, and of the role that public action can play in countering it. The book is divided into four parts. The first attempts to provide a coherent perspective on the complex nutritional, economic, social and political issues involved in the causation of hunger and deprivation. The second deals with famine prevention, paying special attention to Africa and India. The third focuses on chronic undernourishment and related deprivations. Parts two and three include a number of case studies of successful public action for the prevention of hunger and famines in various parts of the world. The fourth part of the book draws together the main themes and concerns of the earlier chapters, and provides an integrated view of the role of public action in eliminating hunger.

Hunger and Public Action

This paper presents a new Multidimensional Poverty Index (MPI) for 104 developing countries. It is the first time multidimensional poverty is estimated using micro datasets (household surveys) for such a large number of countries which cover about 78 percent of the world´s population. The MPI has the mathematical structure of one of the Alkire and Foster poverty multidimensional measures and it is composed of ten indicators corresponding to same three dimensions as the Human Development Index: Education, Health and Standard of Living. Our results indicate that 1,700 million people in the world live in acute poverty, a figure that is between the $1.25/day and $2/day poverty rates. Yet it is no $1.5/day measure. The MPI captures direct failures in functionings that Amartya Sen argues should form the focal space for describing and reducing poverty. It constitutes a tool with an extraordinary potential to target the poorest, track the Millennium Development Goals, and design policies that directly address the interlocking deprivations poor people experience. This paper presents the methodology and components in the MPI, describes main results, and shares basic robustness tests.

Acute Multidimensional Poverty: A New Index for Developing Countries

The Standard of Living.

Introduction Geoffrey Hawthorne 1. The standard of living: lecture I, concepts and critiques Amartya Sen 2. The standard of living: lecture II, lives and capabilities Amartya Sen 3. Professor Sen on the standard of living John Muellbauer 4. The standard of living: uncertainty, inequality and opportunity Ravi Kanbur 5. Commoditisation and the standard of living Keith Hart 6. The standard of living: interests and capabilities Bernard Williams 7. Reply Amartya Sen Bibliography Index.

Keith Hart

Papers

The Standard of Living.

The Standard of living : the Tanner lectures, Clare Hall, Cambridge, 1985

Commoditisation and the Standard of Living