Towards an optimum well-being for the Lithuanian regions

Abstract

The computation of regional income,being an exponent of the welfaree conomy ,is not sufficientt o measuret he rvell-being of a regional population. Well-being goes further. In the well-being economy, each individual would have to feel good concerningm aterialw ealth, health, education, all kind of security and concerningt he environment. In other words, multiple objectivesh ave to be fulfilled. Moreover, these different multiple objectivesa re expressedin diff'erent units. Weights are most of the time used to equalize the different units. However, introduction of weights means irlso introduction of subjectivity. In order to avoid this dilemma, the internal mechanical solution of a ratio systern, producing dimensionless numbers, is preferred. In addition, this outcomec reatest he opportunityt o use a non-subjectiver eference point theory. The choice and importance of the objectives is also non-subjectiveif all stakeholdersin volved come to an agreement. This theory is applied on the different regions of Lithuania. A redistribution of income has to take place from the well-being Lithuanian regions to the poorer regions but under limiting conditions and for well-defined and eventually controlled projects.