Capability-Achievement Link: Role of Knowledge and Institutions

Paul, G.D. Bino and Sankaran, K (2006) Capability-Achievement Link: Role of Knowledge and Institutions. TAPMI, Manipal.

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Abstract

According to Amartya Sen, a person’s capability leads to achievement. He defines capability as a process that involves first having opportunities themselves and next, having the freedoms to make use of these opportunities. This relationship between capability and achievement is complex. To actualize capability-achievement link it is important for the person to have some endowment of knowledge, for instance knowledge to properly valuate achievement or knowledge to identify the characteristics of commodities and so on. In other words, capabilityachievement link involves knowledge on the part of the individual. Knowledge, the way we define it, is an evolving behavioral process (for instance knowledge coming from enactment). We first illustrate the role of knowledge and knowledge activity through two simple equations. The individual’s behavioral process is highly influenced by institutions. Institutional role may be of dual nature; as a source of knowledge or as the intermediary that facilitates exchange. Using a simple diagram we model how institutions function as an intervening variable in capability-achievement link. Our paper links welfare economics with evolutionary economics and shows the role of knowledge and institutions in development.

Item Type:	TAPMI Working Papers
Uncontrolled Keywords:	Capability, Knowledge, Institutions
Subjects:	Economics
Divisions:	General Management and Enterpreneurship
Depositing User:	Ms. Vanitha K
Date Deposited:	15 Nov 2018 11:35
Last Modified:	20 Nov 2018 04:27
URI:	http://tapmi.informaticsglobal.com/id/eprint/316

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