A Real Options Approach To Measuring Freedom In Sen’s Capabilities Approach : WestminsterResearch

Publication dates
Title	A Real Options Approach To Measuring Freedom In Sen’s Capabilities Approach
Type	Journal article
Authors	Mitra, S.
Abstract	Sustainability has gained increasing prominence in research literature, with environmental and social issues becoming more important in economic issues. One of the normative approaches to addressing sustainability issues has been applying Sen’s Capabilities Approach. One of the advantages of Sen’s Capabilities Approach is that it is able to take into account a wider range of issues in decision making compared to alternative methods, such as the ethical importance of freedom. A key problem in operationalising Sen’s Capabilities Approach is providing a quantitative framework for measuring the freedom in decisions. In this paper we propose a method for operationalising Sen’s Capabilities Approach by using the Real Options Analysis as a framework to quantifying the freedom in decisions. The Real Options Analysis is a well-established method of modelling economic decisions and using such an approach we propose quantifying the freedom in decisions in terms of the flexibility to exercise decision under the Real Options Analysis. In this paper we show how Real Options Analysis can be used to quantify and indicate the freedom of decisions in terms of Sen’s Capabilities Approach. This paper provides a new framework for analysing decisions under Sen’s Capabilities Approach and examples are provided.
Keywords	real options
	capabilities approach
	operationalising
	freedom
	welfare
Journal	International Journal of Sustainable Economy
Journal citation	14 (1), pp. 98-110
ISSN	1756-5804
	1756-5812
Year	2022
Publisher	InderScience
Accepted author manuscript	Sen CAM Paper IJSE R1 REF.pdf License CC BY-ND 4.0 File Access Level Open (open metadata and files)
Digital Object Identifier (DOI)	https://doi.org/10.1504/IJSE.2022.119716
Published online	16 Dec 2021
Published in print	2022
Funder	None

Related outputs

A multi-Objective Optimisation Metaheuristic Hybrid technique for Forecasting the Electricity Consumption of the UAE: A Grey Wolf Approach
Andreas Karathanasopoulos, Chia Chun Lo, Sovan Mitra, Mohamed Osman, Hans-Jörg von Mettenheim and Slim Skander 2024. A multi-Objective Optimisation Metaheuristic Hybrid technique for Forecasting the Electricity Consumption of the UAE: A Grey Wolf Approach. Journal of Forecasting. Advanced online publication. https://doi.org/10.1002/for.3187

Catastrophe Bond Pricing In The Primary Market: The Issuer Eﬀect And Pricing Factors
Chatoro, M, Mitra, S., Pantelous, A.A. and Shao, J. 2023. Catastrophe Bond Pricing In The Primary Market: The Issuer Eﬀect And Pricing Factors. International Review of Financial Analysis. 85 102431. https://doi.org/10.1016/j.irfa.2022.102431

Optimal Feedback Control of Stock Prices Under Credit Risk Dynamics
Mitra, S., Jinghai Shao and Karathanasopoulos, Andreas 2022. Optimal Feedback Control of Stock Prices Under Credit Risk Dynamics. Annals of Operations Research. 313, pp. 1285-1318. https://doi.org/10.1007/s10479-021-04002-6

Keynesian Resurgence: Financial Stimulus And Contingent Claims Modelling
Clark, E., Mitra, S. and Jokung, O. 2020. Keynesian Resurgence: Financial Stimulus And Contingent Claims Modelling. International Journal of Mathematics in Operational Research. 17 (2), pp. 199-232. https://doi.org/10.1504/IJMOR.2020.109701

Downside risk measurement in regime switching stochastic volatility
Mitra, S. 2020. Downside risk measurement in regime switching stochastic volatility. Journal of Computational and Applied Mathematics. 378 112845. https://doi.org/10.1016/j.cam.2020.112845

Health Care Investment: The Case of Multiple Sources of Risk
Jokung, O. and Mitra, S. 2020. Health Care Investment: The Case of Multiple Sources of Risk. Asia-Pacific Financial Markets. 27, pp. 231-255. https://doi.org/10.1007/s10690-019-09291-3

An analysis of dollar cost averaging and market timing investment strategies
Lars Kirkby, J., Mitra, S. and Nguyen, D. 2020. An analysis of dollar cost averaging and market timing investment strategies. European Journal of Operational Research. 286 (3), pp. 1168-1186. https://doi.org/10.1016/j.ejor.2020.04.055

FinTech revolution: the impact of management information systems upon relative firm value and risk
Mitra, S. and Karathanasopoulos, A. 2020. FinTech revolution: the impact of management information systems upon relative firm value and risk. Journal of Banking and Financial Technology. 4, p. 175–187. https://doi.org/10.1007/s42786-020-00023-0

Ensemble Models in Forecasting Financial Markets
Karathanasopoulos, A., Mitra, S., Lo, C.C., Zaremba, A. and Osman, M. 2019. Ensemble Models in Forecasting Financial Markets. Journal of Computational Finance. 23 (3), pp. 101-119. https://doi.org/10.21314/JCF.2019.374

Big Data And PAC Learning In The Presence Of Noise: Implications For Financial Risk Management
Chinthalapati, V.L.R., Mitra, S. and Serguieva, A. 2019. Big Data And PAC Learning In The Presence Of Noise: Implications For Financial Risk Management. International Journal of Artificial Intelligence. 17 (1), pp. 34-56.

Risk lovers, mixed risk loving and the preference to combine good with good
Jokung, O. and Mitra, S. 2019. Risk lovers, mixed risk loving and the preference to combine good with good. International Journal of Management and Applied Science. 11 (4), pp. 295-313.

Post Global Financial Crisis Modelling: Credit Risk For Firms That Are Too Big To Fail
Clark, E., Mitra, S. and Jokung, O. 2019. Post Global Financial Crisis Modelling: Credit Risk For Firms That Are Too Big To Fail. International Journal of Financial Markets and Derivatives. 7 (1), pp. 15-39. https://doi.org/10.1504/IJFMD.2019.101235

Political Risk Modelling and Measurement From Stochastic Volatility Models
Mitra, S. 2019. Political Risk Modelling and Measurement From Stochastic Volatility Models. International Journal of Sustainable Economy. 11 (2), pp. 184-218. https://doi.org/10.1504/IJSE.2019.099064

Regression Based Scenario Generation: Applications For Performance Management
Mitra, S., Lim, S. and Karathanasopoulos, A. 2019. Regression Based Scenario Generation: Applications For Performance Management. Operations Research Perspectives. 6 100095. https://doi.org/10.1016/j.orp.2018.100095

Firm Value And The Impact of Operational Management
Mitra, S. and Karathanasopoulos, A. 2019. Firm Value And The Impact of Operational Management. Asia-Pacific Financial Markets. 26, pp. 61-85. https://doi.org/10.1007/s10690-018-9258-1

Stock-ADR Arbitrage: Microstructure Risk
Mitra, S. 2019. Stock-ADR Arbitrage: Microstructure Risk. Journal of International Financial Markets, Institutions and Money. 63 101132. https://doi.org/10.1016/j.intfin.2019.08.004

Efficient Option Risk Measurement With Reduced Model Risk
Mitra, S. 2017. Efficient Option Risk Measurement With Reduced Model Risk. Insurance: Mathematics and Economics. 72, pp. 163-174. https://doi.org/10.1016/j.insmatheco.2016.09.006

Stock Market Prediction Using Evolutionary Support Vector Machines: An Application To The ASE20 Index
Karathanasopoulos, A., Theofilatos, K.A., Sermpinis, D., Dunis, C., Mitra, S. and Stasinakis, C. 2016. Stock Market Prediction Using Evolutionary Support Vector Machines: An Application To The ASE20 Index. European Journal of Finance. 22 (12), pp. 1145-1163. https://doi.org/10.1080/1351847X.2015.1040167

Operational Risk: Emerging Markets, Sectors and Measurement
Mitra, S., Karathanasopoulos, A., Sermpinis, G., Dunis, C. and Hood, J. 2015. Operational Risk: Emerging Markets, Sectors and Measurement . European Journal of Operational Research. 241 (1), pp. 122-132. https://doi.org/10.1016/j.ejor.2014.08.021

Permalink - https://westminsterresearch.westminster.ac.uk/item/v481x/a-real-options-approach-to-measuring-freedom-in-sen-s-capabilities-approach

A Real Options Approach To Measuring Freedom In Sen’s Capabilities Approach

Related outputs

Share this

Usage statistics

Export as