Characterizations of Social Choice Correspondences Based on Equality of Capabilities in a Pure Exchange EconomyCharacterizations of Social Choice Correspondences Based on Equality of Capabilities in a Pure Exchange Economy
2017-11 , Institute of Economic Research, Hitotsubashi University
This paper examines theoretical properties of Amartya Sen's capability approach in a formal model which describes a simple exchange economy with unequal abilities. Specifically, we define and axiomatically characterize the following two classes of social choice correspondences (SCCs) based on the notion of ""equality of capabilities"": (1) SCCs which assign egalitarian and efficient allocations in terms of a social preference ordering defined on capability sets; (2) SCCs which maximize an intersection of all individuals' capability sets with respect to the relation of set inclusion. Our main results show that in a single-good economy, two SCCs can be characterized by a similar combination of three requirements: principles of equal treatment, Pareto efficiency, and rank preservation. However, in a two or more goods economy, a class of SCCs maximizing an intersection of capabilities cannot be characterized by the above three principles, while they are still necessary conditions.
capability approach equality of capabilities common capability
Institute of Economic Research, Hitotsubashi University
Research Center for Normative Economics, Institute of Economic Research, Hitotsubashi University Faculty of Science and Technology, Tokyo University of Science Institute of Economic Research, Hitotsubashi University