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Applying a Nonparametric Efficiency Analysis to Measure Conversion Efficiency in Great Britain

Author

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  • Martin Binder

    (Max Planck Institute of Economics, Jena, Germany)

  • Tom Broekel

    (Department of Economic Geography, Faculty of Geosciences, Utrecht University, The Netherlands)

Abstract

In the literature on Sen’s capability approach, studies focussing on the empirical measurement of conversion factors are comparatively rare. We add to this field by adopting a measure of "conversion efficiency" that captures the efficiency with which individuals convert their resources into achieved functioning. We use a nonparametric efficiency procedure borrowed from production theory and construct such a measure for a set of basic functionings, using data from the wave 2006 of the British Household Panel Survey (BHPS). In Great Britain, 49.88% of the individuals can be considered efficient while the mean of the inefficient individuals reaches one fifth less functioning achievement. An individual's conversion efficiency is positively affected by getting older, being self-employed, married, having no health problems and living in the London area. On the other hand, being unemployed, separated/divorced/widowed and (self-assessed) disabled decrease an individual's conversion efficiency.

Suggested Citation

  • Martin Binder & Tom Broekel, 2009. "Applying a Nonparametric Efficiency Analysis to Measure Conversion Efficiency in Great Britain," Jena Economics Research Papers 2009-100, Friedrich-Schiller-University Jena.
    • Handle: RePEc:jrp:jrpwrp:2009-100
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    Cited by:

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    2. Guarini, Giulio & Laureti, Tiziana & Garofalo, Giuseppe, 2020. "Socio-institutional determinants of educational resource efficiency according to the capability approach: An endogenous stochastic frontier analysis," Socio-Economic Planning Sciences, Elsevier, vol. 71(C).
    3. Andrea Vigorito, 2011. "Bibliography on the Capability Approach 2010--2011," Journal of Human Development and Capabilities, Taylor & Francis Journals, vol. 12(4), pages 607-612, November.
    4. Nikolova Milena & Popova Olga, 2021. "Sometimes Your Best Just Ain’t Good Enough: The Worldwide Evidence on Subjective Well-being Efficiency," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 21(1), pages 83-114, January.
    5. Nadia von Jacobi, 2018. "Institutions as Meso-factors of Development: A Human Development Perspective," Journal of Contextual Economics (JCE) – Schmollers Jahrbuch, Duncker & Humblot, Berlin, vol. 138(1), pages 53-88.

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    More about this item

    Keywords

    conversion efficiency; welfare measurement; robust nonparametric efficiency analysis; functioning production;
    All these keywords.

    JEL classification:

    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • R15 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Econometric and Input-Output Models; Other Methods

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