Economic Analysis, Moral Philosophy and Public Policy

This highly accessibly 2006 book explores the relationships between economics, philosophy, and public policy.

Daniel M. Hausman (Author), Michael S. McPherson (Author)

9780521846295, Cambridge University Press

Hardback, published 20 March 2006

354 pages
23.1 x 15.5 x 2.5 cm, 0.61 kg

“Excellent guides to further reading: comprehensive references and index. Highly recommended.” -- Choice

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.

1. Ethics and economics?
2. Normative economics: two examples
3. How ethics matters to positive economics: two examples
Part I. Rationality and Morality: 4. Rationality
5. Rationality in positive and normative economics
6. Rationality, norms, and morality
Part II. Welfare and Consequences: 7. Utilitarianism and consequentialism
8. Welfare
9. Efficiency
Part III. Liberty, Rights, Equality, and Justice: 10. Liberty, rights and libertarianism
11. Equality and egalitarianism
12. Justice and contractualism
Part IV. Moral Mathematics: 13. Social choice and theory
14. Game theory
15. Pollution transfers and school vouchers - normative economics reconsidered
16. Economics and ethics, hand in hand
Appendix
Glossary
References.

Subject Areas: Economic theory & philosophy [KCA], Political science & theory [JPA], Sociology & anthropology [JH]