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Measuring the Standard of Living: Uncertainty about Its Development

Measuring the Standard of Living: Uncertainty about Its Development

Wulf Gaertner
Abstract
Human development is about expanding the choices human be- ings have to lead lives that they value and is captured by its capability sets which consist of various functioning vectors. The standard of living is then reected in capability sets. This paper proposes some particular ways of measuring the standard of living available to an agent, be it an individual or a whole country, when the direction of the development of society repre- sented by a reference functioning vector is uncertain. We provide axiomatic characterizations of the proposed measures. Keywords: Functioning, Capability, Uncertainty, Social Progress, Standard

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