Economic Analysis, Moral Philosophy, and Public Policy

This book shows how careful attention to moral reasoning can enrich economic understanding and clarify the importance and the limits of an economic analysis of policy problems.

Daniel Hausman (Author), Michael McPherson (Author), Debra Satz (Author)

9781107158313, Cambridge University Press

Hardback, published 15 December 2016

418 pages, 10 b/w illus.
23.6 x 15.8 x 2.6 cm, 0.7 kg

'Economic Analysis, Moral Philosophy, and Public Policy offers a comprehensive review of the intersections of moral philosophy with economics. The authors expertly combine accessibility with sophistication in analyzing topics ranging from foundational issues of welfare economics, rationality, game theory, and distributive justice to public policy problems such as pollution, school vouchers, health care, and unemployment. This is a superb book.' Elizabeth Anderson, University of Michigan, Ann Arbor

This book shows through argument and numerous policy-related 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 the idea of rationality and its connections to ethics, arguing that when they defend their formal model of rationality, most economists implicitly espouse contestable moral principles. Part II addresses the nature and measurement of welfare, utilitarianism and cost-benefit analysis. Part III discusses freedom, rights, equality, and justice - moral notions that are relevant to evaluating policies, but which have played little if any role in conventional welfare economics. Finally, Part IV explores work in social choice theory and game theory that is relevant to moral decision making. Each chapter includes recommended reading and discussion questions.

1. Ethics and economics?
2. Ethics in welfare economics
3. Ethics in positive economics: two examples
Part I. Rationality, Morality, and Markets: 4. Rationality and utility theory
5. Rationality and morality in positive economics
6. The ethical limits to markets
Part II. Welfare and Consequences: 7. Utilitarianism, consequentialism, and justice
8. Welfare
9. Welfare economics
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 theory
14. Game theory
Conclusions: 15. Putting economics and ethics to work
16. Economics and ethics, hand in hand
Appendix.

Subject Areas: Economics [KC], Ethics & moral philosophy [HPQ]