CapMod : A Simulated Society to Evaluate Empirical Estimators of Capabilities

This article introduces an innovative approach to the validation of empirical methods aiming at estimating capabilities. Validating these empirical methods is difficult because capabilities are not directly observable. We propose a computational model to generate data from a simulated society, where we observe both functionings and capabilities. These data can then be used to compare estimation methods against each other. Most importantly, our data generating process is completely disconnected from any estimation procedure and can therefore be used to compare a variety of methods. The model is calibrated to the Mexican economy and coherently reproduces many stylised facts of this economy. The article also proposes a short illustrative analysis on how to use the simulated data and a section on how this can be implemented practically