Combining the Capability Approach and System Dynamics for Well‐Being Oriented Policy‐Making

Abstract

ABSTRACTPolicymakers are increasingly focusing on well‐being. However, the development and ex‐ante assessment of well‐being science‐based policies are not widespread. The Capability Approach (CA) offers a theoretical framework for understanding well‐being and the policies aimed at its improvement. The CA does not provide means to analyse how well‐being evolves over time as a result of the complex interrelations between its constituent components. Additionally, the CA literature provides few analytical techniques for conducting ex‐ante policy evaluation. To overcome these challenges, we propose an approach that combines the CA with the System Dynamics (SD) methodology. The SD method uses modelling and simulation to create insights into the structure and behaviour of complex problems to support policy‐making. While SD is commonly used to examine well‐being issues, utilising well‐being frameworks like the CA is rare. In this paper, we explore both the theoretical and practical benefits of integrating the CA and SD for well‐being‐oriented policy‐making. To aid the practical application of the ideas presented in this paper, we present an illustrative example, a template for modellers, and outline a procedure for an integrated approach to developing well‐being‐oriented policies.