Experimenting with a strong dual necessity approach to social progress

Different social progress indices assess well-being and development differently and thus reflect distinct conceptions of social progress. Broadly, these conceptions fall into two categories: ‘subjective’—the attitudes of individuals; and ‘objective’—external standards. Our starting point is a strong ‘dual necessity’ claim, namely that the two categories of conception have joint-special significance. Such a strong dual necessity conception, when operationalized, demands very low compensability/degree of substitution between the two independent indices, objective and subjective. Experimenting with this idea, we hypothesize that implementing low substitution empirically influences outcomes. Previous research presented this concept and exemplified initial empirical outcomes. The present work enhances and broadens this research by employing the constant elasticity of substitution (CES) function, which allows for the adjustment of substitution levels and comparison of resulting rankings. Furthermore, we demonstrate the results using two different well-known and commonly used indices: Human Development Index (HDI) and Sustainable Development Goals Index (SDGI). Our findings show that using a low substitution approach alters the social progress rankings of many countries in comparison to the original components’ rankings and to a high substitution combination of the two. This holds particularly true for countries in the middle of the original rankings. The paper’s original contribution is that it establishes the CES function as a useful device for implementing the idea of ‘dual necessity.’ Importantly, by experimenting with low substitution, and exemplifying its empirical significance with the CES function, the paper also contributes to further validating a strong dual necessity conception and justifies its own measurement. Such measurement should be of value to social scientists, practitioners and policymakers who care for balanced social progress: social progress that does not neglect either of the two aspects (subjective or objective).

Shiri Cohen Kaminitz, Nathan Sussman