Kuklys examines how Nobel Prize-winning economist Amartya Sen's approach
to welfare measurement can be put in practice for poverty and inequality
measurement in affluent societies such as the UK. Sen argues that an
individual's welfare should not be measured in terms of her income, but
in terms what she can actually do or be, her capabilities. In Chapters 1
and 2, Kuklys describes the capability approach from a standard welfare
economic point of view and provides a comprehensive literature review of
the empirical applications in this area of research. In the remaining
chapters, novel econometric techniques are employed to operationalise
the concepts of functionings and capability to investigate inequality
and poverty in terms of capability in the UK. Kuklys finds that
capability measurement is always a useful complement to traditional
monetary analysis, and particularly so in the case of
capability-deprived disabled individuals.