Values in Economics

I respond to Nuno Palma’s suggestion, made in 2008, that we are approaching the day in which nothing new can be said about Adam Smith. I think that is unlikely. The paper presents a model to support the suggestion. To illustrate my counterargument, I focus on the problem of Adam Smith’s apparently contradictory claims about the effects of the division of labour on character.

Amartya Sen has recently told us how he feels he has not yet made his mark as an economist. I notice that he is strangely not named in the background information to an essay competition. It concerns why some nations are wealthy and others poor, names other economists, and even discusses freedom and capabilities. Here I address the question of why Sen is absent and, more generally, at risk of devaluation.

Rival causal and interpretive approaches to explaining social phenomena have important ethical differences. While human actions can be explained as a result of causal mechanisms, as a meaningful choice based on reasons, or as some combination of the two, it is morally important that social scientists respect others by recognizing them as persons. Interpretive explanations directly respect their subjects in this way, while purely causal explanations do not. Yet although causal explanations are not themselves expressions of respect, they can be (...) used in respectful ways if they are incorporated into subjects’ self-directed projects. This can occur when subjects correctly understand and freely adopt researchers’ goals through a process of informed consent. It can also occur when researchers correctly understand and adopt their subject’s goals, using their research to empower those they study. (shrink)

Joseph Heath sometimes plays the role of a gadfly in climate and environmental ethics. He often defends conventional, economics-focused claims which rub many philosophers the wrong way—claims that are at the heart of issues raised in these pages, claims such as that discounting is justifiable, growth is good, or cost-benefit analysis is appropriate in liberal democracies. I think we can all agree that sophisticated defences of conventional positions play an important part in the ecosystem. For philosophers, a gadfly can challenge (...) entrenched conceptions. If we agree that these goals are worthwhile, then this book serves as a useful summary and synthesis of the ways Heath has ably defended conventional claims about climate policy. (shrink)

It is a commonly expressed sentiment that the science and philosophy of well-being would do well to learn from each other. Typically such calls identify mistakes and bad practices on both sides that would be remedied if scientists picked the right bit of philosophy and philosophers picked the right bit of science. We argue that the differences between philosophers and scientists thinking about well-being are more difficult to reconcile than such calls suggest, and that pluralism is central to this task. (...) Pluralism is a stance that explicitly drives towards accommodating and nurturing the richness and diversity of well-being, both as a concept and as an object of inquiry. We show that well-being science manifests a contingent pluralism at the level of methodology, whereas philosophy of well-being has largely rejected pluralism at the conceptual level. Recently, things have begun to change. Within philosophy, conceptual monism is under attack. But so is methodological pluralism within science. We welcome the first development, and bemoan the second. We argue that a joined-up philosophy and science of well-being should recognise the virtues of both conceptual and methodological pluralism. Philosophers should embrace the methodological justification of pluralism that can be found in the well-being sciences, and scientists should embrace the conceptual reasons to be pluralist that can be found in philosophical debate. (shrink)

Social and medical scientists frequently produce empirical generalizations that involve concepts partly defined by value judgments. These generalizations, which have been called ‘mixed claims’, raise interesting questions. Does the presence of them in science imply that science is value-laden? Is the value-ladenness of mixed claims special compared to other kinds of value-ladenness of science? Do we lose epistemically if we reformulate these claims as conditional statements? And if we want to allow mixed claims in science, do we need a new (...) account of how to reconcile values with objectivity? Alexandrova (2017, 2018) offers affirmative answers to these questions. In responding to Alexandrova’s arguments, this discussion note motivates negative ones and in doing so casts new light on mixed claims. (shrink)

The current economic and societal production system gives money a magnified importance, overlooking other essential flows necessary for human survival and existence. It focuses on monetary indicators like profits, dividends, and GDPs to evaluate organizational production, while often disregarding outputs that harm the biosphere. Money is treated as the constitutive being (ousia) and attributed undemonstrated explanatory properties. Intangible flow theory helps eliminate this metaphysical status of money by recognizing that monetary flows are just one of many necessary flows for human (...) survival and existence. Organizations deliver product-flows that require input-flows from and send output-flows back to the encompassing biosphere, whether they explicitly engage in environmentally friendly activities or not. Therefore, every organization is an ecological entity because it has a relationship with the biosphere, which participates in the manner through which humans integrate into their surrounding environment and relate to other living beings. Eliminating the metaphysical status of money integrates every organization in the biosphere, making organizations accountable for environmental harm caused by their activities. This can be achieved by deconstructing the metaphysical status of money in business models. (shrink)

I identify and resolve an internal tension in Critical Contextual Empiricism (CCE) – the normative account of science developed by Helen Longino. CCE includes two seemingly conflicting principles: on one hand, the cognitive goals of epistemic communities should be open to critical discussion (the openness of goals to criticism principle, OGC); on the other hand, criticism must be aligned with the cognitive goals of that community to count as “relevant” and thus require a response (the goal-relativity of response-requiring criticism principle, (...) GRC). The co-existence of OGC and GRC enables one to draw both approving and condemning judgments about a situation in which an epistemic community ignores criticism against its goals. This tension results from conflating two contexts of argumentation that require different regulative standards. In the first-level scientific discussion, GRC is a reasonable principle but OGC is not; in the meta-level discussion about science, the reverse holds. In meta-level discussion, the relevance of criticism can be established by appealing to goals of science that are more general than the goals of a specific epistemic community. To illustrate my revision of CCE, I discuss why feminist economists’ criticism of the narrowness of the goals pursued in mainstream economics is relevant criticism. (shrink)

This paper compares the capability approach (CA) and libertarian paternalism (LP) to see whether they are compatible. The comparison focuses on rationality, wellbeing, and freedom. The main theoretical framework is Sen’s ‘reason to value’ (RtV). The relevance of this to CA, and LP is analysed, and whether the primacy that CA and LP both accord to reason leads to paternalism is examined. Although the principal focus is on Sen’s, Sunstein’s and Thaler’s original ideas, their key concepts are analysed in the (...) context of the contemporary critical literature on the topic. This critical analysis not only makes it possible to assess whether CA and LP are compatible, but also to see how they perceive rationality, wellbeing, and freedom. The critical analysis further differentiates the various interpretations of RtV in the literature and explains how CA and LP function. (shrink)

At first blush, values such as diversity appear to be worth striving for. The question is whether or not such values—which have become increasingly prevalent in university mission statements—are values as such, which is to ask whether they are things of moral worth (Value, n.d.), or are something else altogether. My unpopular suspicion leans toward the latter. Personal opinions, of course, are hardly a justification for an impassioned critique, however, my opinions mirror those held by moderate and conservative witnesses to (...) the sociopolitical climate of academia (Pew Research Center, 2017) as well as individuals who would typically be considered classically liberal such as Peter Boghossian (2021). Because of this concordance and in order to understand the constitutive relations of academic production, it becomes necessary to critically examine the nature of institutional values, separate from polemical rhetoric that either seeks to construct a "straw man" of them in order to lay them low or insulate them from outside reproach altogether Since "diversity" seems to be the chief concern among interested groups both in the academic setting and the world at large, this article's point of access to the relations of production in academia will be anchored by a Marxian assessment of diversity as a product of social labour in the academic environment. (shrink)

Scholastics were a group of Christian theologians mainly active in Europe during the 12th to 17th centuries. One of the notable teachings in scholastic literature is the theory of just price, which can be considered one of the most frequent theories in the history of economic ideas. This study tries to reassess the theory of just price in the economic thought of scholastic thinkers by referring to classical scholastic texts, through which it examines the general experiences of scholastic theology in (...) confrontation with economic phenomena. For this purpose, the theory of just price is examined from the roots of its formation in scholastic practical wisdom to its most superficial form as an economic institution. Through this investigation, the question of how theology can play a role in its practical field, up to the most superficial economic institutions can be answered. The results of this study show that scholastic thinkers in the theoretical field of practical theology had significant achievements in promoting theology through their writings and teachings in schools. In its practical field, they tried to implement theology in the human foundations of society by building various divine institutions such as a just price. In this regard, the theory of dual human happiness in scholastic theology has significantly impacted the formation of economic issues as part of scholastic practical wisdom. Despite these achievements, their thought is wanting from two aspects: (1) systematic lack of understanding of modern phenomena such as capitalism and (2) no effort to implement their teachings in the social and economic construction of society. -/- . (shrink)

This open access book considers the development of the sharing and collaborative economy with a European focus, mapping across economic sectors, and country-specific case studies. It looks at the roles the sharing economy plays in sharing and redistribution of goods and services across the population in order to maximise their functionality, monetary exchange, and other aspects important to societies. It also looks at the place of the sharing economy among various policies and how the contexts of public policies, legislation, digital (...) platforms, and other infrastructure interrelate with the development and function of the sharing economy. The book will help in understanding the future economy models as well as to contribute in solving questions of better access to resources and sustainable innovation in the context of degrowth and growing inequalities within and between societies. It will also provide a useful source for solutions to the big challenges of our times such as climate change, the loss of biodiversity, and recently the coronavirus disease pandemic. This book will be of interest to academics and students in economics and business, organisational studies, sociology, media and communication and computer science. (shrink)

The problem of building an effective system of interconnected and purposeful innovative changes in business management is solved in the article. The main purpose of the research is to improve the model of business excellence on the basis of interconnected and purposeful innovative changes in business management. Critical analysis of literature sources and approaches to solving the problem of building a perfect model of business emphasizes the diversity of applied methodological approaches and methods of management innovation. However, in terms of (...) business technologicalization, necessity to accelerate information exchange, development of innovation and, at the same time, development of new threats, the need on the basis of strategizing, intellectualization of management, partnership, compliance with the challenges of the external environment, communication efficiency, leadership transformation, balancing intermediate and final results, there is a need to transform business and management on the basis of strategizing, intellectualization of management, partnership interaction, compliance with the challenges of the external environment, communication efficiency, transformation of leadership, balancing intermediate and final results. Relevance of solving of this scientific issue is that the timely use of innovative tools and management methods in the implementation of strategic intentions and goals forms a high adaptability of companies to transformation processes occurring in their external and internal environment under the influence of digital technologies in business processes. The scientific-theoretical and methodological basis of the study were the following methods: abstract-logical and comparative analysis – to generalize theoretical approaches and confirm the practical importance of solving the problem of building a model of providing business excellence on the basis of interconnected and focused innovative changes in business management; system analysis and modelling – method of building a model of business excellence based on managerial innovation; system-analytical – method of balancing the interaction of the components providing business excellence; generalization – when drawing conclusions based on research results. The object of research is a system of interconnected and purposeful innovative changes in business management. The results of solving the problem of building a model of business excellence while balancing the interaction of the components of such provision and implementation of the process of digital transformation of the business model. The results of the research have practical value for business entities that seek to increase the effectiveness of interconnected and purposeful innovative changes in business management. (shrink)

There is a growing consensus among philosophers of science that core parts of the scientific process involve non-epistemic values. This undermines the traditional foundation for public trust in science. In this article I consider two proposals for justifying public trust in value-laden science. According to the first, scientists can promote trust by being transparent about their value choices. On the second, trust requires that the values of a scientist align with the values of an individual member of the public. I (...) argue that neither of these proposals work and suggest an alternative that does better. When scientists must appeal to values in the course of their research, they should appeal to democratic values: the values of the public or its representatives. (shrink)

The books’ goal is to answer the question: Do the weaknesses of value-free economics imply the need for a paradigm shift? The author synthesizes criticisms from different perspectives (descriptive and methodological). Special attention is paid to choices over time, because in this area value-free economics has the most problems. In that context, the enriched concept of multiple self is proposed and investigated. However, it is not enough to present the criticisms towards value-free economics. For scientists, a bad paradigm is better (...) than no paradigm. Therefore, the author considers whether value-based economics with normative approaches such as economics of happiness, capability approach, libertarian paternalism, and the concept of multiple self can be the alternative paradigm for value-free economics. This book is essential reading to everyone interested in the current state of economics as a discipline. (shrink)

Despite the conclusions from the contemporary philosophy of science, many economists cherish the ideal of positive science. Therefore, value-free economics is still the central paradigm in economics. The first aim of the paper is to investigate economics' axiomatic assumptions from an epistemological perspective. The critical analysis of the literature shows that the positive-normative dichotomy is exaggerated. Moreover, value-free economics is based on normative foundations that have a negative impact on individuals and society. The paper's second aim is to show that (...) economics' normativity is not a problem because the discussion concerning values is possible and unavoidable. In this context, Weber and other methodologists are investigated. The conclusion of the paper is that science can thrive without strict methodological rules thanks to institutional mechanisms. Therefore, economists could learn from artists who accept the world without absolute rules. This perspective opens the possibility for methodological pluralism and normative approaches. (shrink)

Economic liberty is best understood in opposition to economic domination. This article develops a radical republican conception of such domination. In particular, I argue that radical republicanism provides a more satisfactory account of individual economic freedom than the market-friendly liberties of working, transacting, holding, and using championed by Nickel and Tomasi. So too, it avoids the pitfalls of other conceptions of economic liberty which emphasize real freedom, alternatives to immiserating work, or unalienated labor. The resulting theory holds that economic domination (...) occurs when someone’s access to civic capabilities is contingent on the arbitrary economic power of others. Socialist institutions—suitably configured—can deliver on this individual economic freedom, allowing the dominating power of proprietors, shareholders, landlords, and managers to be kept in check, and providing an unconditional minimum that allows individual citizens to be less beholden to others in meeting many of their most fundamental civic needs. Thus, I conclude that socialism can be championed as a politics of individual economic liberty. (shrink)

This paper discusses ethical issues surrounding Integrated Assessment Models (IAMs) of the economic effects of climate change, and how climate economists acting as policy advisors ought to represent the uncertain possibility of catastrophe. Some climate economists, especially Martin Weitzman, have argued for a precautionary approach where avoiding catastrophe should structure climate economists’ welfare analysis. This paper details ethical arguments that justify this approach, showing how Weitzman’s “fat tail” probabilities of climate catastrophe pose ethical problems for widely used IAMs. The main (...) claim is that economists who ignore or downplay catastrophic risks in their representations of uncertainty likely fall afoul of ethical constraints on scientists acting as policy advisors. Such scientists have duties to honestly articulate uncertainties and manage (some) inductive risks, or the risks of being wrong in different ways. (shrink)

The existential insecurity of human beings has induced them to create protective spheres of symbols: myths, religions, values, belief systems, theories, etc. Rationality is one of the key factors contributing to the construction of civilisation in technical and symbolic terms. As Hankiss (2001) has emphasised, protective spheres of symbols may collapse – thus causing a profound social crisis. Social and political transformations had a tremendous impact at the end of the 20th century. As a result, management theories have been revised (...) in order to deal with transition and uncertainty. Francis Fukuyama's (2000) approach is supportive of hierarchical organisation as the best solution when facing a 'disruption'. The notion of Homo Hierarchicus has been based on, allegedly, rational presumptions. This paper contributes to the discussion on hierarchy within contemporary organisations. It criticises so-called 'natural' and 'rational' necessities justifying hierarchy. A key issue identified by the paper is the formalisation of language in claiming value-free knowledge and 'detached' observation as the basis for neutral rationality and aspired efficiency. This should be seriously reconsidered as hindering rather than aiding understanding of social complexity. All in all, Homo Hierarchicus appears to be misleading rather than helping symbolic sphere or construct. (shrink)

The modern concept of ideology was established by the liberal politician and philosopher Destutt de Tracy, with the objective of creating an all-embracing and general science of ideas, which followed the sensualist and empiricist trend initiated by Locke that culminated in the positivism of Comte. Natural selection and immunity are two key concepts in the history of biology that were strongly based on the Malthusian concept of struggle for existence. This concept wrongly assumed that population grew faster than the means (...) of existence. This “natural” law contained implicitly the idea that the poor and least gifted would not survive. This idea led to the progressive development of the concept of natural selection, whose definitive version was given by Darwin. Mechnikov took the concepts of struggle for existence and natural selection and conceived infectious diseases as a struggle between a host and its invader, the so-called phagocytosis theory. This theory created the necessity to possess mechanisms to discriminate between the own and the foreign, and led to the conception of the immune self. These concepts were not developed from ideas coming from perceptions or sensations, but from ideas coming from their values: individual interest, inevitable inequality, property, utility and profit. Values are ideals that constitute an ideological matrix which exerts a numinous activity and influence the development of our future actions. In consequence, science and its practice cannot avoid and ignore the values that drive them and impulse them towards certain directions. (shrink)

The goal of this article is to show that instrumental rationality and utility that have been used in economics for many years does not work well. What is presented in the article is how significant the influence of utilitarianism has been on economics and why the economists get rid of humans’ goals and motivations. It is shown in the article that the human who decides in present is absolutely different from the human who decides over time. Many economists neglected this (...) problem because they wanted to have an effective and simple model. Becker’s economic method is presented as a dead end to which economics has been brought to. It is impossible to connect different selves of one human being by using the utility measure. The works of Schelling and J.S. Mill are used to explain this impossibility. The conclusion of this article is that instrumental rationality and utility have affected economics significantly. But, this simplified view on human nature is no longer valid. Hence, economics needs to think not only about the means but also about the human goals. Economics needs to rebuff relativism and show people how to achieve well-being. If we want to help people with their self-governance, we will have to choose reason over emotions. (shrink)

Many economic measures are structured to reflect ethical values. I describe three attitudes towards this: maximalism, according to which we should aim to build all relevant values into measures; minimalism, according to which we should aim to keep values out of measures; and an intermediate view. I argue the intermediate view is likely correct, but existing versions are inadequate. In particular, economists have strong reason to structure measures to reflect fixed, as opposed to user-assessable, values. This implies that, despite disagreement (...) about precisely how to do so, economists should standardly adjust QALYs and DALYs to reflect egalitarian values. (shrink)

This introduction explains the reasons behind this Special issue and discuss the organization and content of it. The difficulty of a genuine dialogue and understanding between economics, law and humanities, seems to be due not only to the fragmentation of reflections on man, but to a real ‘conflict of anthropologies’. What kind of conceptions of man and human values are presupposed by and / or privileged by economics, law, economic approaches to law and social sciences? How and when do these (...) conceptions come into conflict within and between disciplines? How do these conceptions of man and his values influence the conceptions of economics, law and institutions, and vice versa, how do these last conceptions influence the former? What are the normative, regulatory and practical implications of assuming an anthropological and / or axiological perspective instead of another? This Special issue aims at exploring the possibility of finding a common ground for discussion between economics, law and humanities, through the analysis and comparison of both the conceptions of man, human action and values assumed by economics, law and humanities, and their normative implications. The contributions to this Special issue and its organization are outlined at the end of this introduction. (shrink)

In this paper we propose an Ontology of Commercial Exchange (OCE) based on Basic Formal Ontology. OCE is designed for re-use in the Industrial Ontologies Foundry (IOF) and in other ontologies addressing different aspects of human social behavior involving purchasing, selling, marketing, and so forth. We first evaluate some of the design patterns used in the Financial Industry Business Ontology (FIBO) and Product Types Ontology (PTO). We then propose terms and definitions that we believe will improve the representation of contractual (...) obligations, sales processes, and their associated documents. A commercial exchange, for instance, involves mutual agreement to reciprocate actions, such as transferring money, performing a service, or transferring goods. (shrink)

The article analyzes and presents the results of international experience of integration development in the field of tourism and hospitality, modern and efficient methods of integration in the field of tourism. The effective ways of realization of integration development programs at tourist enterprises and hotel chains are determined. The main objectives of integration processes in the field of tourism are also defined. The analysis of the most famous multinational tour operators and the largest hotel chains in the world in the (...) form of a table and graph is shown. The processes that take place at the expense of integration processes in the tourism business are analyzed and identified. A promising direction for further research is the economic feasibility of the feasibility of international integration in the tourism sector and ways to improve the strategies of integration management. (shrink)

Abstract: Economists are accustomed to distinguishing between a positive and a normative component of their work, a distinction that is peculiar to their field, having no exact counterpart in the other social sciences. The distinction has substantially changed over time, and the different ways of understanding it today are reflective of its history. Our objective is to trace the origins and initial forms of the distinction, from the English classical political economy of the first half of the 19th century to (...) the emergence of welfare economics in the first half of the 20th century. This sequential account will also serve to identify the main representative positions along with the arguments used to support them, and it thus prepares the ground for a discussion that will be less historical and more strictly conceptual. -/- Résumé : Les économistes ont coutume de distinguer entre une composante positive et une composante normative de leurs travaux, ce qui est une singularité de leur discipline, car cette distinction n'a pas de répondant exact dans les autres sciences sociales. Elle a fortement évolué au cours du temps et les différentes manières de la concevoir aujourd'hui en reflètent l'histoire. On se propose ici d'en retracer les origines et les premières formes, de l'économie politique classique anglaise de la première moitié du XIXe siècle jusqu'à l'apparition de l'économie du bien-être dans la première moitié du XXe siècle. Ce parcours séquentiel vise aussi à identifier les positions les plus représentatives et les arguments invoqués pour les soutenir, en préparant ainsi une discussion qui serait moins historique et plus strictement conceptuelle. (shrink)

Abstract:Trust is important for a variety of social relationships. Trust facilitates trade, which increases prosperity and induces us to interact with people of different backgrounds on terms that benefit all parties. Trade promotes trustworthiness, which enables us to form meaningful as well as mutually beneficial relationships. In what follows, I argue that when we erect institutions that enhance trust and reward people who are worthy of trust, we create the conditions for a certain kind of moral progress.

In the course of the eighteenth and nineteenth centuries the paradigm of a new science, political economy, was established. It was a science distinct from the Aristotelian sub-disciplines of practical philosophy named oikonomía and politiké, and emphasis on its character of science not unlike the natural sciences – still called ‘natural philosophy’ – mirrored precisely a willingness to stress its autonomy from two other sub-disciplines of practical philosophy, that is, ethics and politics. However, the new science resulted from a transformation (...) of part of traditional practical philosophy, allowing the inclusion of bodies of knowledge accumulated by experts of commerce and public finance. Such bodies of knowledge were unified by the (true or alleged) discovery of regularities, mechanisms, causal connections making for a new partial order within the overall social order. How far this paved the way to a science similar to mathematics rather left a normative discipline as alive as ever was a recurrent question for at least a century, until the marginalist revolution opened the way for a sharp division, leaving ‘economics’ as a science of causes and effects facing ‘economic policy’ as a discourse on ends. (shrink)

Preocuparea pentru funcția de marketing a topurilor universitare îi face pe manageri să ignore modul neglijent în care ele sunt concepute, deoarece adesea „clasamentele servesc în mod strategic celor care, doritori să reformeze sistemul universitar din țara lor, le folosesc în mod oportunist pentru a justifica politici deja decise”. Ei nu numai că sunt pregătiți să accepte schimbările dramatice în clasamente (care, de cele mai multe ori dovedesc de fapt inadecvarea instrumentelor de evaluare), dar se străduiesc din răsputeri să îmbunătățească (...) artificial propria poziție, angajând, spre exemplu, personalități științifice cu un CV impresionant. Iar obsesia clasamentelor, una dintre sursele importante ale corupției intelectuale în mediul academic, nu apare de la sine. Este strâns legată de comercializarea intensivă a cunoașterii și de reducerea finanțării publice a universităților. „Importanța acordată brusc clasamentelor universităților” - susține Gingras, adăugând exemple concrete de abordări cinice ale unor manageri care, înțelegând erorile sistemice, consimt să participe la acreditarea lor - „este de asemenea un efect al discursurilor pe tema internaționalizării «pieței universitare» și a căutării unei clientele străine lucrative care să compenseze veniturile scăzute ce provin de la guvern și descreșterea numărului de studenți locali. Numeroși conducători ai universităților care pleacă în delegație în China sau în India par a identifica acolo o «piață» potențial lucrativă care nu ar trebui lăsată numai pe mâinile universităților americane, australiene sau britanice.” Există, de altfel, un sistem foarte complex de stimuli care îi determină pe membrii comunității academice să accepte denaturarea treptată a valorilor fundamentale de care depinde prestigiul intelectual, validând-o. Astfel, pentru a folosi metafora aceluiași autor, foarte mulți văd că hainele noi ale universităților sunt de fapt imaginare, dar puțini ar dori să o spună. (shrink)

Economic pressures, mounting environmental, security and health requirements, are all critical factors that shape economic action. With regard to environmental protection, an economic entity acting as homo oeconomicus finds himself in a situation resembling a prisoner’s dilemma. Signposts for a possible resolution of this dilemma include an environmental management system, a system of environmental law based on the principles of environmental ethics, and a new conception of human nature.

Several areas of welfare economics seek to evaluate states of affairs as a function of interpersonally comparable individual utilities. The aim is to map each state of affairs onto a vector of individual utilities, and then to produce an ordering of these vectors that can be represented by a mathematical function assigning a real number to each. When this approach is used in intertemporal contexts, a central theoretical question concerns the evaluative weight to be applied to utility coming at different (...) times. This question concerns the rate of pure time preference, which is one key determinant of the social discount rate. This article argues that the standard philosophical account of pure time preference is mistaken, because it ascribes to economists a methodological commitment they need not, and often do not, accept. This in turn undercuts the most common philosophical objection to pure time preference, which traces at least to Rawls’s A Theory of Justice. The article then evaluates three further objections to pure time preference, concluding that it might still be defensible under certain circumstances. The article closes by articulating a final argument that is suggested by the “Social, Economic and Ethical Concepts and Methods” chapter of the most recent Intergovernmental Panel on Climate Change report. If this further argument is sound, it would constitute a decisive objection to pure time preference as it currently figures in much intertemporal welfare economics. (shrink)

Some people may think that libertarianism and meritocracy have much in common; that the libertarian's ideal world looks like the meritocrat's ideal world; and that the public policies guiding us to each are one and the same. This is wrong in all respects. In this essay I explain why. -/- After providing an overview of meritocratic justice, I argue that meritocracy is a more compelling theory of distributive justice than libertarianism. Meritocracy better protects the core value of personal responsibility; incorporates (...) efficiency-enhancing regulation which libertarianism cannot; provides more positive liberty; and solves salient, real-world debates about distributive justice. (shrink)

Summary measures of health, such as the quality-adjusted life year and disability-adjusted life year, have long been known to incorporate a number of value choices. In this paper, though, I show that the value choices in the construction of such measures extend far beyond what is generally recognized. In showing this, I hope both to improve the understanding of those measures by epidemiologists, health economists and policy-makers, and also to contribute to the general debate about the extent to which such (...) measures should be adjusted to reflect ethical values. (shrink)

Thomas C. Leonard presents an intellectual history of the Progressive Era from the perspective of economists. It is hard to understate the influence this group had in developing Progressive ideas. Leonard brilliantly details how Progressive economists wielded enormous influence not only in spreading ideas about traditional economic concepts, but also ideas and theories that influenced political and civil liberties. For example, the Progressives gave us the social science professor, the scholar-activist, social worker, muckraking journalist, and expert government advisor. All of (...) these reform-vocations, according to Leonard, sought to replace the invisible hand of the market with the visible hand of the administrative state. In short, Leonard’s book is a must-read for everyone remotely interested in political economy. (shrink)

I defend the idea that a liberal commitment to value neutrality is best honoured by maintaining a pure cardinality component in our rankings of opportunity or liberty sets. I consider two challenges to this idea. The first holds that cardinality rankings are unnecessary for neutrality, because what is valuable about a set of liberties from a liberal point of view is not its size but rather its variety. The second holds that pure cardinality metrics are insufficient for neutrality, because liberties (...) cannot be individuated into countable entities without presupposing some relevantly partisan evaluative perspective. I argue that a clear understanding of the liberal basis for valuing liberty shows the way to satisfying responses to both challenges. (shrink)

Climate change policy decisions are inescapably intertwined with future generations. Even if all carbon dioxide emissions were to be stopped today, most aspects of climate change would persist for hundreds of years, thus inevitably raising questions of intergenerational justice and sustainability. -/- The chapter begins with a short overview of discount rate debate in climate economics, followed by the observation that discounting implicitly makes the assumption that natural capital is always substitutable with man-made capital. The chapter explains why non-substitutability matters (...) if we are to take intergenerational justice seriously and invest aptly in mitigation. Non-substitutability simply implies that there are some forms of capital that cannot be substituted by another, and so consumption of one cannot be compensated with additional stocks of the other. The non-substitutability of critical natural capital can be defended without empirical data about preferences or the need to view the environment as a superior good, and the argument is presented through the language of keeping options open. -/- Those alive today make decisions about what natural capital to use and what to save for future. These choices are often represented as different points in a continuum of sustainability: weak sustainability is associated with a high degree of substitutability and therefore a lot of flexibility over what capital to consume, whereas strong sustainability is more stringent on substitutability. While it may be that in economical understanding weak and strong sustainability collapse into one another, philosophically the emphasis is slightly different. The chapter discusses how normative sustainability can be supported without ignoring opportunity costs and trade-offs. (shrink)

A discussion of the relationship between Ricardo and his Unitarian Minister Thomas Belsham, a New Testament scholar and the author of a philosophical treatise inspired by the Hartley-Priestley philosophy.

Much academic work (in philosophy, economics, law, etc.), as well as common sense, assumes that ill health reduces well-being. It is bad for a person to become sick, injured, disabled, etc. Empirical research, however, shows that people living with health problems report surprisingly high levels of well-being - in some cases as high as the self-reported well-being of healthy people. In this chapter, I explore the relationship between health and well-being. I argue that although we have good reason to believe (...) that health problems causing pain and death typically do reduce well-being, health problems that limit capabilities probably don't reduce well-being nearly as much as most people suppose. I then briefly explore the consequences of this conclusion for political philosophy and ethics. If many health problems don't significantly reduce well-being, why should governments go to great expense to prevent or treat them? Why should parents be obliged to ensure the health of their children? (shrink)

Abstract: This paper examines Mark Blaug's position on the normative character of Paretian welfare economics: in general, and specifically with respect to his debate with Pieter Hennipman over this question during the 1990s. The paper also clarifies some of the confusions that emerged within the context of this debate, and closes by providing some additional arguments supporting Blaug's position that he himself did not provide.

This research paper attempts to get pragmatic way to deal with few questions like, 'Will Indian Economic thoughts be able to give directions to crises-ridden global economic system?', 'Can India show solutions to the World's Present Socio-economical crises?'' and What are the Alternatives available before mankind to avoid economic crises?' The concept of economic exploitation or “exploitation” which has been the focal point of solemn philosophical debate is one of the favorite nouns in the glossary of critics of the free (...) market economy. The strongest version of the claim that the free market necessarily involves exploitation is that of Karl Marx. The aim of this research paper is to bring to the notice of economist, policy makers, research scholars, professors and students of economics as well as of philosophy and layman, that what kind of solution, a Philosopher from India, like Prof. Surendra S. Barlingay has to offer to the discipline of economics at large. (shrink)

Проблеми взаємовпливу та взаємозв'язку економіки і культури складні й різноманітні, тому є теоретично й практично актуальними: без глибокого вивчення і методологічного та інституціонального визначення їх ролі неможливо зрозуміти сутність сучасних тенденцій в глобалізованому економічному процесі і нові тенденції суспільного середовища. В сучасному розумінні роль культури в економічному аспекті слід розглядати як функціонально пов’язану з усім суспільним виробництвом, головним чином – у відтворенні робочої сили та «інтелектуальному оснащенні» працівника. Сьогодні інновації та знання пронизують не тільки всі сфери певної національної економіки, вони (...) «розсіюються» у світовому просторі, перетинаючи державні кордони. У цьому випадку мова йде про міжнародний перелив або трансфер знань, який формується під впливом економічної культури суспільства. (shrink)

In this article we explore an argumentative pattern that provides a normative justification for expected utility functions grounded on empirical evidence, showing how it worked in three different episodes of their development. The argument claims that we should prudentially maximize our expected utility since this is the criterion effectively applied by those who are considered wisest in making risky choices (be it gamblers or businessmen). Yet, to justify the adoption of this rule, it should be proven that this is empirically (...) true: i.e. that a given function allows us to predict the choices of that particular class of agents. We show how expected utility functions were introduced and contested in accordance with this pattern in the 18th century and how it recurred in the 1950s when Allais made his case against the neo-Bernoullians. (shrink)

A short presentation of Schumpeter's work with spedial attention to its philophical backgroound.

The paper analyses economic evaluations by distinguishing evaluative statements from actual value judgments. From this basis, it compares four solutions to the value neutrality problem in economics. After rebutting the strong theses about neutrality (normative economics is illegitimate) and non-neutrality (the social sciences are value-impregnated), the paper settles the case between the weak neutrality thesis (common in welfare economics) and a novel, weak non-neutrality thesis that extends the realm of normative economics more widely than the other weak thesis does.

In this paper I offer an account of the normative dimension implicit in D. Bernoulli’s expected utility functions by means of an analysis of the juridical metaphors upon which the concept of mathematical expectation was moulded. Following a suggestion by the late E. Coumet, I show how this concept incorporated a certain standard of justice which was put in question by the St. Petersburg paradox. I contend that Bernoulli would have solved it by introducing an alternative normative criterion rather than (...) a positive model of decision making processes. (shrink)

I reconstruct a few themes of the early twentieth-century discussion that headed to the claim of a value-free character of economic theory and of the subsequent discussion that headed to a resumption of a rich discussion of economic ethics and of applied ethics with regard to economic practices. I examine the discussion on value-freedom from classical political economy to Robbins, the role played by utilitarianism in economic theory and the puzzles connected to the idea of utility and several recent discussions (...) on social choice, welfare, and collective choice. I end by discussing a few good reasons for the revival of business ethics. (shrink)

A wide variety of sources, including the Huntington literature and popular mass media, show that Huntington’s “clash of civilizations” idea actually has very little value in understanding the current global political context. The central assumption of Huntington’s view, that cultural kinship ties influence loyalties and agreements on a global scale, has little to do with the daily lives of American citizens and little to do with the decisions made by the current presidential administration. The mass media evidence from the United (...) States shows that the most important “kinship” ties are not religious or cultural, but economic. The argument involves a deeper analysis of the current trend towards religious programs on American television, a timeline of events relating to the Halliburton – Cheney relationship, and views expressed by members of the United States military in Stars and Stripes. (shrink)