Applying a Non-parametric Efficiency Analysis to Measure Conversion Efficiency in Great Britain

Martin Binder and Tom Broekel ()

Journal of Human Development and Capabilities, 2011, vol. 12, issue 2, 257-281

Abstract: In the literature on Sen's capability approach, studies focusing 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 non-parametric efficiency procedure borrowed from production theory and construct such a measure for a set of basic functionings, using data from the 2005 wave of the British Household Panel Survey. 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.

Keywords: Conversion efficiency; Welfare measurement; Robust non-parametric efficiency analysis; Functioning production (search for similar items in EconPapers)
Date: 2011
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Citations: View citations in EconPapers (6)

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Working Paper: Applying a Nonparametric Efficiency Analysis to Measure Conversion Efficiency in Great Britain (2009)
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DOI: 10.1080/19452829.2011.571088

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