Abstract: In this paper we model sustainable human development as intended in
Sen’s capability approach in a system dynamic framework. Our purpose is to
verify the variations over time of some achieved functionings, due to structural
dynamics and to variations of the institutional setting and instrumental freedoms
(IF Vortex).
The model is composed of two sections. The ‘Left Side’ one points out the
‘demand’ for functionings in an ideal world situation. The real world one, on the
‘Right Side’ indicates the ‘supply’ of functionings that the socio-economic
system is able to provide individuals with.
The general model, specifically tailored for Italy, can be simulated over desired
time horizons: for each time period, we carry out a comparison between ideal
world and real world functionings. On the basis of their distances, the model
simulates some responses of decision makers. These responses, in turn
influenced by institutions and instrumental freedoms, ultimately affect the
dynamics of real world functionings, i.e. of sustainable human development