Economic Analysis, Moral Philosophy and Public PolicyThis 2006 book shows through accessible argument and numerous examples how understanding moral philosophy can improve economic analysis, how moral philosophy can benefit from economists' analytical tools, and how economic analysis and moral philosophy together can inform public policy. Part I explores rationality and its connections to morality. It argues that in defending their model of rationality, mainstream economists implicitly espouse contestable moral principles. Part II concerns welfare, utilitarianism and standard welfare economics, while Part III considers important moral notions that are left out of standard welfare economics, such as freedom, rights, equality, and justice. Part III also emphasizes the variety of moral considerations that are relevant to evaluating policies. Part IV then introduces technical work in social choice theory and game theory that is guided by ethical concepts and relevant to moral theorizing. Chapters include recommended readings and the book includes a glossary of relevant terms. |
Contents
ix | |
1 | |
3 | |
12 | |
Two Examples | 30 |
Rationality | 45 |
Rationality in Positive and Normative Economics | 60 |
Rationality Norms and Morality | 78 |
Equality and Egalitarianism | 174 |
Justice and Contractualism | 198 |
Social Choice Theory | 217 |
Game Theory | 234 |
CONCLUSIONS | 257 |
Normative Economics Reconsidered | 259 |
Economics and Ethics Hand in Hand | 274 |
How Could Ethics Matter to Economics? | 291 |
WELFARE AND CONSEQUENCES | 97 |
Utilitarianism and Consequentialism | 99 |
Welfare | 118 |
Efficiency | 135 |
Liberty Rights and Libertarianism | 159 |
Glossary | 309 |
315 | |
335 | |
Common terms and phrases
accept actions agents alternatives argue argument Arrow’s bargaining behavior beliefs benefits better better-off Chapter claims concerning conflict consequences consequentialist cost–benefit analysis depend discussed distribution efficiency egalitarianism equal respect erences ethics evaluation example expected utility explain freedom game theory imply important individual individual’s inequalities interests involuntary Jack Jill judgments LDCs libertarians liberty matter maximize ment moral commitments moral norms moral philosophy Nash equilibrium nomic normative economics notion objective one’s ordinal utility outcomes Pareto efficient Pareto improvement Pareto optimal Pareto principle perfect competition person philosophers plausible play player poor countries positive economics preference satisfaction view problems questions Rawls Rawls’s reasons relevant satisfaction of preferences self-interested Sen’s social choice theory social welfare function strategy Summers’s Suppose theorem theorists theory of justice theory of rationality things tion unemployment utilitarianism utility function utility theory voluntary vouchers wages welfare economics welfare economists well-being workers worse-off