Economic Analysis, Moral Philosophy and Public Policy

Front Cover
Cambridge University Press, Mar 20, 2006 - Political Science - 354 pages
This 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

Preface
ix
INTRODUCTION
1
Ethics and Economics?
3
Two Examples
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
References
315
Index
335
Copyright

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Page 2 - Just between you and me, shouldn't the World Bank be encouraging more migration of the dirty industries to the LDCs [less developed countries]?
Page 2 - I think the economic logic behind dumping a load of toxic waste in the lowest-wage country is impeccable and we should face up to that.

About the author (2006)

Daniel M. Hausman is Herbert A. Simon Professor of Philosophy at the University of Wisconsin, Madison. He is the author or editor of seven books, including Causal Asymmetries (1998), Essays on Philosophy and Economic Methodology (1992), The Separate and Inexact Science of Economics (1992), both editions of The Philosophy of Economics: An Anthology (1984, 1994), and the first edition of Economic Analysis and Moral Philosophy (Cambridge Surveys in Economic Literature, 1996, with Michael McPherson), all published by Cambridge University Press. Professor Hausman has worked on issues concerning ethics and economics, foundational questions concerning the nature of rationality, economic methodology, and causation. He is currently investigating questions concerning the relations between health, welfare, and preferences.

Michael McPherson, President of the Spencer Foundation in Chicago, Illinois, is past President of Macalester College, St. Paul, Minnesota, and served as Dean of Faculty and Professor of Economics at Williams College. He has been a Fellow of the Institute for Advanced Study in Princeton and Senior Fellow at the Brookings Institution. Jointly with Daniel M. Hausman he founded and edited the Cambridge University Press journal Economics and Philosophy. Dr. McPherson is co-author of five books. His articles have appeared in the Journal for Economic Literature, American Economic Review, Philosophy and Public Affairs, and Ethics. He has served as a trustee at the College Board and the American Council for Education, and is a member of the National Academy of Education.

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