Extending the boundaries of economics to well-being : an interlinked thinking approach

Well-being is a multi-dimensional and complex concept integrating economic, social, environmental and cultural components. Indicators are used extensively to track change in the constituent components of well-being. Yet, little effort has been directed at understanding the relationships between the different well-being measures. This chapter describes, using a New Zealand case study, a methodology developed that allows participants to better understand well-being as a complex interconnected system. The methodology called ‘interlinked thinking’ combines causal loop diagrams and matrices. Participants first determine the indicator relationships in the well-being system. These are then analysed to provide information on: (1) the structure and the feedback loops; (2) the roles of the different indicators; (3) the strong links; (4) possible intervention points and (5) the ‘what-if’ implications from a predetermined change in the system. The application of interlinked thinking (InT) demonstrates that people conceptualise links in a well-being system very differently. The approach also communicates the complexity of well-being and makes relationships between indicators more visible. This case study outcome was interlinked thinking can provide a better understanding of how well-being change transpires.