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Normative Economics
Normative economics (as opposed to positive economics) is the part of economics that deals with normative statements. It focuses on the idea of fairness and what the outcome of the economy or goals of public policy ''ought to be''.Paul A. Samuelson and William D. Nordhaus (2004). ''Economics'', 18th ed., pp. 5-6 & ndGlossary of Terms, "Normative vs. positive economics." Economists commonly prefer to distinguish normative economics ("what ought to be" in economic matters) from positive economics ("what is"). Many normative (value) judgments, however, are held conditionally, to be given up if facts or knowledge of facts changes, so that a change of values may be purely scientific. On the other hand, welfare economist Amartya Sen distinguishes ''basic (normative) judgements'', which do not depend on such knowledge, from ''nonbasic'' judgments, which do. He said, "no judgments are demonstrably basic" while some value judgments may be shown to be nonbasic. This leaves open the possibil ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Positive Economics
Positive economics (as opposed to normative economics) is the part of economics that deals with positive statements. That is, it focuses on the description, quantification and explanation of economic phenomena.Stanley Wong (1987). "positive economics," The New Palgrave: A Dictionary of Economics, v. 3, pp. 920-21 It deals with empirical facts as well as cause-and-effect behavioral relationships and emphasizes that economic theories must be consistent with existing observations and produce testable, precise predictions about the phenomena under question.Milton Friedman (1953). " The Methodology of Positive Economics," ''Essays in Positive Economics''. Positive economics as a science concerns analysis of economic behavior to determine what is true''.'' Examples of positive economic statements are "the unemployment rate in France is higher than that in the United States," or “an increase in government spending would lower the unemployment rate.” Either of these is potentially f ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Economic Ideology
An economic ideology is a set of views forming the basis of an ideology on how the economy should run. It differentiates itself from economic theory in being normative rather than just explanatory in its approach, whereas the aim of economic theories is to create accurate explanatory models to describe how an economy currently functions. However, the two are closely interrelated, as underlying economic ideology influences the methodology and theory employed in analysis. The diverse ideology and methodology of the 74 Nobel laureates in economics speaks to such interrelation. A good way of discerning whether an ideology can be classified an economic ideology is to ask if it inherently takes a specific and detailed economic standpoint. Furthermore, economic ideology is distinct from an economic system that it supports, such as capitalism, to the extent that explaining an economic system (positive economics) is distinct from advocating it (normative economics). The theory of econom ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
A Dictionary Of Economics
A, or a, is the first letter and the first vowel of the Latin alphabet, used in the modern English alphabet, the alphabets of other western European languages and others worldwide. Its name in English is ''a'' (pronounced ), plural ''aes''. It is similar in shape to the Ancient Greek letter alpha, from which it derives. The uppercase version consists of the two slanting sides of a triangle, crossed in the middle by a horizontal bar. The lowercase version can be written in two forms: the double-storey a and single-storey ɑ. The latter is commonly used in handwriting and fonts based on it, especially fonts intended to be read by children, and is also found in italic type. In English grammar, " a", and its variant " an", are indefinite articles. History The earliest certain ancestor of "A" is aleph (also written 'aleph), the first letter of the Phoenician alphabet, which consisted entirely of consonants (for that reason, it is also called an abjad to distinguish it fro ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
John C
John is a common English name and surname: * John (given name) * John (surname) John may also refer to: New Testament Works * Gospel of John, a title often shortened to John * First Epistle of John, often shortened to 1 John * Second Epistle of John, often shortened to 2 John * Third Epistle of John, often shortened to 3 John People * John the Baptist (died c. AD 30), regarded as a prophet and the forerunner of Jesus Christ * John the Apostle (lived c. AD 30), one of the twelve apostles of Jesus * John the Evangelist, assigned author of the Fourth Gospel, once identified with the Apostle * John of Patmos, also known as John the Divine or John the Revelator, the author of the Book of Revelation, once identified with the Apostle * John the Presbyter, a figure either identified with or distinguished from the Apostle, the Evangelist and John of Patmos Other people with the given name Religious figures * John, father of Andrew the Apostle and Saint Peter * Pope Jo ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Essays In Positive Economics
Milton Friedman's book ''Essays in Positive Economics'' (1953) is a collection of earlier articles by the author with as its lead an original essay "The Methodology of Positive Economics." This essay posits Friedman's famous, but controversial, principle (called the F-Twist by Samuelson) that assumptions need not be "realistic" to serve as scientific hypotheses; they merely need to make significant predictions. Contents of the book The book is organized in four parts: * Introduction : The Methodology of Positive Economics * Price Theory : The Marshallian Demand Curve : The ‘Welfare’ Effects of an Income Tax and an Excise Tax * Monetary Theory and Policy : The Effects of a Full-Employment Policy on Economic Stability: A Formal Analysis : A Monetary and Fiscal Framework for Economic Stability : The Case for Flexible Exchange Rates : Commodity-Reserve Currency : Discussion of the Inflationary Gap : Comments on Monetary Policy * Comments on Method : Lange on Price Flexibility and E ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Andrew Caplin
Andrew S. Caplin (born 15 June 1956 in London, England) is a British economist, now living in the United States, where he received his Ph.D. from Yale University in 1983. He is a professor of economics at New York University, co-director of the Center for Experimental Social Science, and Research Associate at the National Bureau of Economic Research. Caplin's research focuses on six areas: (1). economics and psychology (behavioral economics,) (2.) indivisibility and economic outcome, (3.) life cycle consumption and portfolio choice, (4.) real estate finance, and (5.) individual differences and outcomes in economics and policies. Caplin has published extensively and serves as co-Editor with Andrew Schotter of the Oxford University Press/CESS series of publications entitled "Methods of Modern Economics", is a fellow of the Econometric Society, an associate editor of the ''Quarterly Journal of Economics'', co-editor of ''Economic Inquiry ''Economic Inquiry'' is a peer-reviewed aca ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Economic Progressivism
Economic progressivism or fiscal progressivism is a political and economic philosophy incorporating the socioeconomic principles of social democrats and political progressives. These views are often rooted in the concept of social justice and have the goal of improving the human condition through government regulation, social protections and the maintenance of public goods. It is not to be confused with the more general idea of progress in relation to economic growth. Economic progressivism is based on the idea that capitalist markets left to operate with limited government regulation are inherently unfair, favoring big business, large corporations and the wealthy. Progressives believe that a fair market should result in a normal distribution of wealth, but in most countries the wealthy earn heavily disproportionate incomes. Hence, progressives advocate controlling the markets through public protections that they believe will favor upward mobility, diminish income inequality and ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Welfare Economics
Welfare economics is a branch of economics that uses microeconomic techniques to evaluate well-being (welfare) at the aggregate (economy-wide) level. Attempting to apply the principles of welfare economics gives rise to the field of public economics, the study of how government might intervene to improve social welfare. Welfare economics also provides the theoretical foundations for particular instruments of public economics, including cost–benefit analysis, while the combination of welfare economics and insights from behavioral economics has led to the creation of a new subfield, behavioral welfare economics. The field of welfare economics is associated with two fundamental theorems. The first states that given certain assumptions, competitive markets produce ( Pareto) efficient outcomes; it captures the logic of Adam Smith's invisible hand. The second states that given further restrictions, any Pareto efficient outcome can be supported as a competitive market equilibrium. Th ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Social Choice Theory
Social choice theory or social choice is a theoretical framework for analysis of combining individual opinions, preferences, interests, or welfares to reach a ''collective decision'' or ''social welfare'' in some sense.Amartya Sen (2008). "Social Choice,". ''The New Palgrave Dictionary of Economics'', 2nd EditionAbstract & TOC./ref> Whereas choice theory is concerned with individuals making choices based on their preferences, social choice theory is concerned with how to translate the preferences of individuals into the preferences of a group. A non-theoretical example of a collective decision is enacting a law or set of laws under a constitution. Another example is voting, where individual preferences over candidates are collected to elect a person that best represents the group's preferences. Social choice blends elements of welfare economics and public choice theory. It is methodologically individualistic, in that it aggregates preferences and behaviors of individual member ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Social Welfare Function
In welfare economics, a social welfare function is a function that ranks social states (alternative complete descriptions of the society) as less desirable, more desirable, or indifferent for every possible pair of social states. Inputs of the function include any variables considered to affect the economic welfare of a society. In using welfare measures of persons in the society as inputs, the social welfare function is individualistic in form. One use of a social welfare function is to represent prospective patterns of collective choice as to alternative social states. The social welfare function provides the government with a simple guideline for achieving the optimal distribution of income. The social welfare function is analogous to the consumer theory of indifference-curve– budget constraint tangency for an individual, except that the social welfare function is a mapping of individual preferences or judgments of everyone in the society as to collective choices, which ap ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Positive Economics
Positive economics (as opposed to normative economics) is the part of economics that deals with positive statements. That is, it focuses on the description, quantification and explanation of economic phenomena.Stanley Wong (1987). "positive economics," The New Palgrave: A Dictionary of Economics, v. 3, pp. 920-21 It deals with empirical facts as well as cause-and-effect behavioral relationships and emphasizes that economic theories must be consistent with existing observations and produce testable, precise predictions about the phenomena under question.Milton Friedman (1953). " The Methodology of Positive Economics," ''Essays in Positive Economics''. Positive economics as a science concerns analysis of economic behavior to determine what is true''.'' Examples of positive economic statements are "the unemployment rate in France is higher than that in the United States," or “an increase in government spending would lower the unemployment rate.” Either of these is potentially f ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Normative Science
In the applied sciences, normative science is a type of information that is developed, presented, or interpreted based on an assumed, usually unstated, preference for a particular outcome, policy or class of policies or outcomes. Regular or traditional science does not presuppose a policy preference, but normative science, by definition, does. Common examples of such policy preferences are arguments that pristine ecosystems are preferable to human altered ones, that native species are preferable to nonnative species, and that higher biodiversity is preferable to lower biodiversity.Wilhere, George F. (2012). "Inadvertent advocacy". ''Conservation Biology''. 26(1): 39–46. In more general philosophical terms, normative science is a form of inquiry, typically involving a community of inquiry and its accumulated body of provisional knowledge, that seeks to discover good ways of achieving recognized aims, ends, goals, objectives, or purposes. Many political debates revolve around ar ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
