Abstract for: IQuaL: a dynamic model for assessing the impact of public policies on sustainable development
This paper is made up of two parts: the first part presents the general structure and technical aspects of the IQuaL (Individual Quality of Life) model. IQuaL is a system dynamic model, built within the capability approach tradition to study the impact of alternative patterns of public expenditure on the well-being of a heterogeneous population. The overlapping-generations structure of the model gives it an intertemporal, long-term dimension, thereby allowing a sustainable development perspective. It focuses on three main functionings (health, education and environment) and studies the various stages leading from public expenditure to functionings and to well-being. The second part focuses on the results of the simulations carried out by the model. The paper shows the key variables that affect the impact on well-being of changes in public expenditure, and explores, with reference to Italy, their crucial role and inter-dependencies. Finally, the implemented analyses provide useful and tangible advices for policy makers who have to implement policies of sustainable human development.