Cost-benefit analysis (CBA) evaluates actions in terms of negative consequences (costs) and positive consequences (benefits). Though much has been said on CBA, little attention has been paid to the types of values held by costs and benefits. This paper introduces a simple typology of values in CBA and applies it to three forms of CBA: the common, money-based CBA, CBA based in social welfare, and CBA based in intrinsic value. The latter extends CBA beyond its usual anthropocentric domain. Adequate handling (...) of value typology in CBA avoids analytical mistakes and connects CBA to its consequentialist roots. (shrink)

This article characterizes politics, philosophy, and economics as a substantive research programme as a flexible and analytic debate on the relations between the individual and society that incorporates both positive and normative analyses. This, in contrast to a view of PPE as a series of interdisciplinary or multidisciplinary topics. To this end, I sketch the general shape of the research programme, it boundaries and its features, before offering a slightly more detailed account of some aspects of the PPE programme. I (...) also defend the claim that there is some value in recognizing PPE as a research programme, and after discussing the conditions required for the programme to thrive, suggest that there is some reason to be concerned for its future. (shrink)

This article examines Sagoff's criticisms of 'Four Dogmas of Environmental Economies' and argues that none of them are fatal. Many of the criticisms appear to rest on general misunderstandings about welfare economics. One misunderstanding is that transaction costs are theoretically indistinguishable from regular production costs. The theoretical distinction is that transaction costs vary under alternative policies and institutions whereas production costs are fixed by tastes, technology and endowments. Another misunderstanding is that market failure concerns only Pareto efficiency. Market failure also (...) concerns social efficiency with respect to the 'social welfare function', a device for making explicit ethical judgments about the interpersonal distribution of welfare. A third misunderstanding is that the 'rationality assumption' drives economic theory. In fact, the explanatory power of economic models comes mainly from explicit assumptions about the constraints facing economic agents. A fourth misunderstanding is that welfare economics is used as a mechanism for making legal and political decisions. Rather, welfare economics is used as a method for informing legal and political decisions by evaluating their outcomes on the basis of individual welfare. Used properly, it can improve the democratic process by bringing hidden costs and difficult issues to the attention of both policy-makers and the wider public. (shrink)

This paper studies the relationship between promoting people's welfare and respecting their autonomy of choice under risk. I highlight a conflict between these two aims. Given compelling assumptions, welfarists end up disregarding people's unanimous preference, even when everyone involved is entirely rational and only concerned with maximizing their own welfare. Non-welfarist theories of social choice are then considered. They are shown to face difficulties, too: either they fail to respect the value of welfare in at least one important sense, or (...) they end up prioritizing different people's welfare differently in non-risky choices, on the basis of their attitudes to risk, which are intuitively irrelevant in this context. (shrink)

Scholars disagree about the plausibility of preference purification. Some see it as a familiar phenomenon. Others denounce it as conceptually incoherent, postulating that it relies on the psychologically implausible assumption of an inner rational agent. I argue that different notions of rationality can be leveraged to advance the debate: procedural rationality and structural rationality. I explicate how structural rationality, in contrast to procedural rationality, allows us to offer an account of the guiding idea behind preference purification that avoids inner rational (...) agents. Afterward, I address two pressing challenges against preference purification that emerge under the structural rationality account. (shrink)

Even where willingness-to-pay as a measure of welfare impact is adjusted for diminishing marginal utility, welfare economics is shown to favour policies that add to the life expectancy or that enhance the quality of life of persons who are already better-off. I propose an alternative, Equal Respect methodology, under an axiomatic claim that at the point of decision the prospective life years of all individuals are of equal intrinsic social value. This justifies equal valuation of risk mitigation across all persons; (...) similarly, all appraised impacts should be scaled to accord equal respect to difficult but no-less-valuable lives. (shrink)

This paper presents a new analysis of the concept of non-instrumental need, and, using it, demonstrates how a need-satisfaction theory of well-being is much more plausible than might otherwise be supposed. Its thesis is that in at least some contexts of evaluation a central part of some persons’ well-being consists in their satisfying certain “personal needs”. Unlike common conceptions of other non-instrumental needs, which make those out to be moralised, universal, and minimal, personal needs are expansive and particular to particular (...) persons, generated rather by persons’ non-moral personal commitments. Against objections to the contrary, I show how these are genuine necessities, since unlike mere desires and freely escapable aims, personal needs constitute objective, inescapable, and non-compensable practical requirements. The personal-need-satisfaction theory of well-being combines objectivity with subject-dependence in novel ways, and motivates well-being pluralism at the level of individual agency. Implicating necessity as it does in the structure of individual well-being, this account presents a robust challenge to ethical and political theories that rely on the intrapersonal aggregation of well-being to be unproblematic. (shrink)

Since their discovery in the early 1990s, Stem Cell has brought the prospect of radically improving treatments for a host of diseases such as Alzheimer's, Parkinson's disease, cancers and many among other diseases that currently render patients and scientists helpless to combat. With the advent of medical and scientific research, comes the inevitable emergence of ethical controversy that often accompanied major scientific and medical development. The use of Stem Cell is no different. Those who seek to curtail the use of (...) certain stem cell lines, revert to the argument that has defied many medical debates over the previous decades. The destruction of human life to create life is one of the key philosophical points that all anti-stem cell advocates attempt to make. However, the purpose of this paper is to analysis the various aspects of ethical debate concerning the use of stem cells in medical research. (shrink)

According to a widely held view of the matter, whenever we assess beliefs as ‘rational’ or ‘justified’, we are making normative judgements about those beliefs. In this discussion, I shall simply assume, for the sake of argument, that this view is correct. My goal here is to explore a particular approach to understanding the basic principles that explain which of these normative judgements are true. Specifically, this approach is based on the assumption that all such normative principles are grounded in (...) facts about values, and the normative principles that apply to beliefs in particular are grounded in facts about alethic value––a kind of value that is exemplified by believing what is true and not believing what is false. In this chapter, I shall explain what I regard as the best way of interpreting this approach. In doing so, I shall also show how this interpretation can solve some problems that have recently been raised for approaches of this kind by Selim Berker, Jennifer Carr, Michael Caie, and Hilary Greaves. (shrink)

Values are incommensurable when they cannot be measured on a single cardinal scale. Many philosophers suggest that incommensurability can help us solve the problems of population ethics. I agree. But some philosophers claim that populations bear incommensurable values merely because they contain different numbers of people, perhaps within some range. I argue that mere differences in how many people exist, even within some range, do not suffice for incommensurability. I argue that the intuitive neutrality of creating happy people is better (...) captured by a version of average utilitarianism. But this view is problematic. So I suggest a version of total utilitarianism that avoids the repugnant conclusion by appealing to incommensurable dimensions of wellbeing. (shrink)

According to the orthodox treatment of risk preferences in decision theory, they are to be explained in terms of the agent's desires about concrete outcomes. The orthodoxy has been criticised both for conflating two types of attitudes and for committing agents to attitudes that do not seem rationally required. To avoid these problems, it has been suggested that an agent's attitudes to risk should be captured by a risk function that is independent of her utility and probability functions. The main (...) problem with that approach is that it suggests that attitudes to risk are wholly distinct from people's (non-instrumental) desires. To overcome this problem, we develop a framework where an agent's utility function is defined over chance propositions (i.e., propositions describing objective probability distributions) as well as ordinary (non-chance) ones, and argue that one should explain different risk attitudes in terms of different forms of the utility function over such propositions. (shrink)

Der libertäre Paternalismus genießt in Politik, Wissenschaft und Öffentlichkeit eine große Popularität, die er insbesondere zwei Merkmalen verdankt: Erstens stützt sich der LP auf verhaltensökonomische Ergebnisse, die zeigen, dass individuelle Entscheidungen oft nicht der neoklassischen Rationalitätskonzeption entsprechen, sodass Individuen durch sogenanntes Nudging zu besseren, ihren wahren Präferenzen entsprechenden Entscheidungen verholfen werden könne. Zweites ist damit der Anspruch verbunden, das Wohlergehen der Individuen, wie sie selbst es verstehen, zu erhöhen. Dieser Beitrag zeigt anhand einer dogmengeschichtlichen Analyse der zentralen, dem LP zugrunde (...) liegenden Begriffe Präferenz, Nutzen, Rationalität und Wohlergehen, dass der LP diesen Anspruch nicht einlösen kann. Eine detaillierte begriffliche Analyse ist deshalb geboten, weil diese Konzepte in der Ökonomik immer wieder für Missverständnisse sorgen. Eine theoriegeschichtlich informierte Untersuchung wiederum ist notwendig, da diese Konfusion insbesondere auf der Tatsache beruht, dass der Gehalt dieser Begriffe sich im Laufe der Zeit gravierend verändert hat und sich die verschiedenen Bedeutungen heute z. T. wechselseitig überlagern. (shrink)

What are economic exchanges? The received view has it that exchanges are mutual transfers of goods motivated by inverse valuations thereof. As a corollary, the standard approach treats exchanges of services as a subspecies of exchanges of goods. We raise two objections against this standard approach. First, it is incomplete, as it fails to take into account, among other things, the offers and acceptances that lie at the core of even the simplest cases of exchanges. Second, it ultimately fails to (...) generalize to exchanges of services, in which neither inverse preferences nor mutual transfers hold true. We propose an alternative definition of exchanges, which treats exchanges of goods as a special case of exchanges of services and which builds in offers and acceptances. According to this theory: (i) The valuations motivating exchanges are propositional and convergent rather than objectual and inverse; (ii) All exchanges of goods involve exchanges of services/actions, but not the reverse; (iii) Offers and acceptances, together with the contractual obligations and claims they bring about, lie at the heart of all cases of exchange. (shrink)

I argue that prioritarianism cannot be assessed in abstraction from an account of the measure of utility. Rather, the soundness of this view crucially depends on what counts as a greater, lesser, or equal increase in a person’s utility. In particular, prioritarianism cannot accommodate a normatively compelling measure of utility that is captured by the axioms of John von Neumann and Oskar Morgenstern’s expected utility theory. Nor can it accommodate a plausible and elegant generalization of this theory that has been (...) offered in response to challenges to von Neumann and Morgenstern. This is, I think, a theoretically interesting and unexpected source of difficulty for prioritarianism, which I explore in this article. (shrink)

This is a comprehensive anthology of works concerning the nature of economics as a science, including classic texts and essays exploring specific branches and schools of economics. Apart from the classics, most of the selections in the third edition are new, as are the introduction and bibliography. No other anthology spans the whole field and offers a comprehensive introduction to questions about economic methodology.

Many philosophers hold that for various reasons there must be psychological laws governing beliefs and desires. One of the few serious examples that they offer is the _belief-desire law_, which states, roughly, that _ceteris paribus_ people do what they believe will satisfy their desires. This paper argues that, in fact, there is no such law. In particular, decision theory does not support the contention that there is such a law.

In criticizing communitarian views of justice, Amartya Sen argues that identity is not merely a matter of discovery but an object of reasoned choice subject to constraints. Distinguishing three notions of identity – self-perception, perceived identity and social affiliation – I claim that the relevant constraints implied by this argument are minimal. Some of Sen's arguments about perceived identity and social context do not establish any further constraints. Sen also argues that a model of multiculturalism and some forms of education (...) can restrict, or fail to promote, reasoned and informed identity choice. This argument is better understood in the light of Sen's work on capability and justice, notably his concern with ways in which underdogs can adapt and his emphasis on public reasoning. It highlights limitations on information and opportunities for reasoning. I suggest that these lead to genuine constraints on (reasoned and informed) identity choice. The paper focuses on Sen's work, though its claims are also relevant to George Akerlof and Rachel Kranton's analysis of identity. (shrink)

That the maximization of quality-adjusted life years violates concerns for fairness is well known. One approach to face this issue is to elicit fairness preferences of the public empirically and to incorporate the corresponding equity weights into cost-utility analysis (CUA). It is thereby sought to encounter the objections by means of an axiological modification while leaving the value-maximizing framework of CUA intact. Based on the work of Lübbe (2005, 2009a, 2009b, 2010, forthcoming), this paper questions this strategy and scrutinizes the (...) concomitant assumptions concerning the nature of prioritization decisions. Empirical studies indicate that these premises are in fact unwarranted. People chose a certain resource allocation because they perceive it as a fair way to treat the persons concerned, not because it maximizes something valuable, and it is questionable if prioritization decision can be represented as value-maximizing choices at all. This reflection on the fundamental distinction between deontological and consequentialist reasoning bears general implications for the scope of ‘economic imperialism.’. (shrink)

Neoclassical economics assumes that individuals have stable and context-independent preferences, and uses preference satisfaction as a normative criterion. By calling this assumption into question, behavioural findings cause fundamental problems for normative economics. A common response to these problems is to treat deviations from conventional rational choice theory as mistakes, and to try to reconstruct the preferences that individuals would have acted on, had they reasoned correctly. We argue that this preference purification approach implicitly uses a dualistic model of the human (...) being, in which an inner rational agent is trapped in an outer psychological shell. This model is psychologically and philosophically problematic. (shrink)

This article develops an unconventional perspective on the utilitarianism of Bentham and Mill in at least four areas. First, it is shown that both authors conceived of utility as irreducibly multi-dimensional, and that Bentham in particular was very much aware of the ambiguity that multi-dimensionality imposes upon optimal choice under the greatest happiness principle. Secondly, I argue that any attribution of intrinsic worth to any form of human behaviour violates the first principles of Bentham's and Mill's utilitarianism, and that this (...) renders both authors immune to the claim by G. E. Moore that they committed a ‘naturalistic fallacy’. Thirdly, in light of these contentions, I find no flaw in Mill's ‘proof of utility’. Fourthly, I use the notion of intrapersonal utility weights to provide an interpretation of Mill's qualitative hedonism that is entirely consistent with his value monism. (shrink)

According to a popular strategy amongst economists and philosophers, in order to solve the problem of interpersonal utility comparisons, we have to look at how ordinary people make such comparisons in everyday life. The most recent attempt to develop this strategy has been put forward by Goldman in his “Simulation and Interpersonal Utility” (Ethics 4:709–726, 1995). Goldman claims, first, that ordinary people make interpersonal comparisons by simulation and, second, that simulation is reliable for making interpersonal comparisons. In this paper, I (...) focus on Goldman’s latter claim. After updating Goldman’s account of how ordinary people make interpersonal comparisons in the light of Goldman’s newest formulation of his simulation theory of mental ascription (Goldman, Simulating Minds. Oxford University Press, Oxford, 2006), I develop and assess Goldman’s arguments in favour of the reliability of simulation for interpersonal comparisons. I argue that, under certain conditions, there may be room for a scientifically acceptable solution to the problem of interpersonal utility comparisons. (shrink)

In der vorliegenden Arbeit wird eine normative Analyse und Verteidigung der Erbschaftssteuer unternommen. Zunächst wird eine egalitaristische Argumentation für die Steuer entfaltet. Aufgrund ihrer progressiven Struktur ist die Erbschaftssteuer ein geeignetes Instrument, um der wachsenden ökonomischen Ungleichheit entgegenzuwirken und letztlich verschiedene egalitäre Ideale (politische Gleichheit, Chancengleicheit etc.) zu befördern. Anschließend wird untersucht, wie aus normativer Perspektive zu beurteilen ist, dass der Erblasser bei Erhebung der Steuer nicht mehr lebt. Die restliche Arbeit besteht in einer Auseinandersetzung mit den wichtigsten Einwänden gegen (...) die Erbschaftssteuer. So wird oft behauptet, diese verletze die natürlichen Eigentumsrechte des Erblassers bzw. des Erben und sie ignoriere zudem die Verdienstansprüche des Erblassers. Schließlich sei die Steuer aus diversen "familien-basierten" Erwägungen abzulehnen. Nicht nur werden diese Einwände erfolgreich zurückgewiesen; ferner wird gezeigt, dass einige der, diesen Argumenten zugrundeliegenden, Prinzipien selbst zur Verteidigung einer egalitären Erbschaftssteuer (also einer Erbschaftssteuer, die aus egalitären Prinzipien folgt) herangezogen werden können. (shrink)

Ethics, Policy & Environment, Volume 14, Issue 3, Page 313-327, October 2011.

This essay criticizes the proposal recently defended by a number of prominent economists that welfare economics be redirected away from the satisfaction of people's preferences and toward making people happy instead. Although information about happiness may sometimes be of use, the notion of happiness is sufficiently ambiguous and the objections to identifying welfare with happiness are sufficiently serious that welfare economists are better off using preference satisfaction as a measure of welfare. The essay also examines and criticizes the position associated (...) with Daniel Kahneman and a number of co-authors that takes welfare to be ‘objective happiness’ – that is, the sum of momentary pleasures. (shrink)

In recent years, several authors have called to ground descriptive and normative decision theory on neuro-psychological measures of utility. In this paper, I combine insights from the best available neuro-psychological findings, leading philosophical conceptions of welfare and contemporary decision theory to rebut these prominent calls. I argue for two claims of general interest to philosophers, choice modellers and policy makers. First, severe conceptual, epistemic and evidential problems plague ongoing attempts to develop accurate and reliable neuro-psychological measures of utility. And second, (...) even if these problems are solved, neuro-psychological measures of utility lack the potential to inform welfare analyses and policy evaluations. (shrink)