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From a different point of view, when determining PPH via public expenditure indicators,
Lombardy and Emilia Romagna show lower values, attesting their capacity of turning public
expenditure into well-being improvement. On the contrary the negative degree of conversion of
public expenditure in Campania seems to demonstrate a failure of public policies, which could
in part explain also the low level of absolute well-being in that region. Therefore, the use of
public expenditure as a tool to improve well-being could prove more effective in the two
northern regions.

Finally the positive and the negative growth simulations run over a three-year time-span,
seem to affect rather markedly PPH both for Lombardy and Campania, and to have scarce
impact on Emilia Romagna. On the contrary at aggregate level the variation are stronger for the
latter region, while they appear weaker for Lombardy and almost irrelevant for Campania. In
general it is however interesting to point out that with a 7.2% increase of all the commodities
over three years, the maximum increase of PPH is only about one third (2.6%).

The main purpose of this paper was to test system dynamics to operationalize Sen’s
capability approach. According to the evidence of the models and of the simulations run, we
think that our attempts are quite consistent with Sen’s view to well-being operationalization, in
which commodities (and incomes) are only the material basis. Well being in fact depends on a
number of personal and social circumstances that can usefully be internalized in a systemic
model. Therefore we believe that the strength of this operative approach lies in the fact that it
consents an objective verification of the variations over time of the functionings, due to the
assumed variations of some elements of the system (the commodities), filtered by the conversion
factors.

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