DRU: Measurement of the Standard of Living Based on the Theory of Functionings: Southern California as a Natural Laboratory

University Of California-Riverside, Riverside CA

Investigators

Abstract

The concept of the standard of living has received much attention over the last two decades or so. The Human Development Reports published annually by the United Nations is just one example of the growing interest in this subject. Broadly speaking, there are two non-exclusive approaches to the understanding of living standards: the approach based on income or consumption and the approach based on 'real indicators' such as nutrition, education, and health, which is also known as the 'functioning' approach. Each of these approaches has its use. In particular, the functioning approach, which has been put on a sound conceptual foundation by the works of Nobel laureate A. Sen (1985, 1987) and the world-renowned philosopher M. Nussbaum (1988), can be of considerable help in assessing the different dimensions of the quality of life in developed as well as developing countries. This project is the first step in a multiyear research agenda that aims to measure the standard of living based on the theory of functionings, and to provide policy formulations. We aim to deal with the issues of the quality of life that the region of Southern California is facing and will face in the near future. It is expected that in the next twenty-five years, the inland Southern California region will experience a 112 percent increase in population. This rapid growth will affect the quality of life of its residents because it will impact the supply of quality jobs, educational and health services, the transportation and communication networks, the air and water quality, and the survival of native plant and animal species. While this may be deemed too focused on our local concerns, we would like to stress that the problems that the region is experiencing are universal in nature. Therefore, Southern California emerges as a natural laboratory for the sub-regional analysis we propose. The project has two main objectives: (i) the development of further methodological insights to the theory of functionings; and (ii) data collection for the environmental dimension of living standards in Southern California. An innovative concept "Social Value-at-Risk" is devised as a public policy tool that will inform the decision-making process. To achieve our goals, we will draw on the expertise of a multi-disciplinary group of engineers, social, and natural scientists.