Measurement in Economics

Measures of need-based justice that have been proposed lately rely on a single dimension of need that is taken into account. This is shown to be problematic since humans experience different kinds of need that appear to be incommensurable.

“You have an architect and a ditch-digger working together on a construction project. Who gets paid more, and why?” Does a tendency toward abstraction and quantification, a pretense of objectivity, obscure the character, situation and bias from which all economic and political theorems stem? Following the principle that arguments neither arise nor persist in a vacuum, that they live and die by their context and character, we can describe two sorts of response corresponding to two rather timeless worldviews, along with (...) their accompanying “mind-sets”. The degree to which these views indicate differing “kinds” in human nature, beyond which there can be no further reduction to common ground, whether conversely they simply reflect historical and economic circumstance, or to what extent they are both, will be left to the reader. One might discern in the sensibilities described some alignment along traditional epithets of “bourgeois” vs. “working class”, but this is not necessarily so. I will therefore avoid overwrought labels, but admit that such family resemblances speak to a longer historical view and a persistent problematic. (shrink)

This paper develops an account of normative validity and illustrates it through poverty measures. Many ideas addressed below are legatees of Anna Alexandrova’s reflections on what she called “value-aptness” in measuring well-being. To my knowledge, she introduced the term “normative validity” (Alexandrova, 2017: 151). Still, my goal is to address normative validity in a broader context than she did, highlighting its significance not only for well-being but also for other concepts, particularly poverty. I will further discuss how normative validity can (...) provide deeper insights into an important debate in poverty measurement: that between normative-driven approaches like Amartya Sen’s and data-driven ones like Peter Townsend’s. (shrink)

Extensive measurement is the standard measurement-theoretic approach for constructing a ratio scale. It involves the comparison of objects that can be concatenated in an additively representable way. This paper studies the implications of extensively measurable welfare for social choice theory. We do this in two frameworks: an Arrovian framework with a fixed population and no interpersonal comparisons, and a generalized framework with variable populations and full interpersonal comparability. In each framework we use extensive measurement to introduce novel domain restrictions, independence (...) conditions, and constraints on social evaluation. We prove a welfarism theorem for these domains and characterize the social welfare functions that satisfy the axioms of extensive measurement at both the individual and social levels. The main results are simple axiomatizations of strong dictatorship in the Arrovian framework and classical utilitarianism in the generalized framework. (shrink)

Need considerations play an important role in empirically informed theories of distributive justice. We propose a concept of need-based justice that is related to social participation and provide an ethical measurement of need-based justice. The β-ε-index satisfies the need-principle, monotonicity, sensitivity, transfer and several »technical« axioms. A numerical example is given.

Multidimensional concepts are everywhere, and they are important. Examples include moral value, welfare, scientific confirmation, democracy, and biodiversity. How, if at all, can we aggregate the underlying dimensions of a multidimensional concept F to yield verdicts about which things are Fer than which overall? Social choice theory can be used to model and investigate this aggregation problem. Here, we focus on a particularly thorny problem made salient by this social choice-theoretic framework: the underlying dimensions of a given concept might be (...) measurable on different types of scales—e.g., some ordinal and some cardinal. An underappreciated impossibility theorem due to Anna Khmelnitskaya shows that seemingly plausible constraints on aggregation across scale types are inconsistent. This impossibility threatens to render the notion of overall Fness incoherent. We attempt to defuse this threat, arguing that the impossibility depends on an overly restrictive conception of measurement and of how measurement constrains aggregation. Adopting a more flexible—and, we think, more perspicuous—conception of measurement opens an array of possibilities for aggregation across disparate scale types. (shrink)

There is a widely held view on measurement inferences, that goes back to Stevens’s ([1946]) theory of measurement scales and ‘permissible statistics’. This view defends the following prohibition: you should not make inferences from averages taken with ordinal scales (versus quantitative scales: interval or ratio). This prohibition is general—it applies to all ordinal scales—and it is sometimes endorsed without qualification. Adhering to it dramatically limits the research that the social and biomedical sciences can conduct. I provide a Bayesian analysis of (...) this inferential problem, determining when measurements from ordinal scales can be used to confirm hypotheses about relative group averages. The prohibition, I conclude, cannot be upheld, even in a qualified sense. The beliefs needed to make average comparisons are less demanding than those appropriate for quantitative scales. I illustrate with the alleged paradigm ordinal scale, Mohs’ scale of mineral hardness, arguing that the literature has mischaracterized it. (shrink)

Tsui and Weymark (Economic Theory, 1997) have shown that the only continuous social welfare orderings on the whole Euclidean space which satisfy the weak Pareto principle and are invariant to individual-specific similarity transformations of utilities are strongly dictatorial. Their proof relies on functional equation arguments which are quite complex. This note provides a simpler proof of their theorem.

It is widely held that under ordinal utility, utility differences are ill-defined. Allegedly, for these to be well-defined (without turning to choice under risk or the like), one should adopt as a new kind of primitive quaternary relations, instead of the traditional binary relations underlying ordinal utility functions. Correlatively, it is also widely held that the key structural properties of quaternary relations are entirely arbitrary from an ordinal point of view. These properties would be, in a nutshell, the hallmark of (...) cardinal utility. While much is obviously true in these two tenets, this note explains why, as stated, they should be abandoned. Any ordinal utility function induces a rich quaternary relation. There is such a thing as ordinal utility differences. Furthermore, this induced quaternary relation respects, apart from completeness, the most standard structural properties of quaternary relations. These properties are, from an ordinal point of view, anything but arbitrary; from a quaternary perspective only completeness should be considered the hallmark—if any—of cardinal utility. These facts are explained to be especially relevant to the critical appreciation of the ordinalist methodology. (shrink)

The development of the science of poverty has largely been driven by the need to define more precisely what poverty is, as well as to provide theoretical and empirical criteria for identifying those who suffer from it. This thesis focuses on a notable response to these and related questions: the conception and measure of poverty by the British sociologist Peter Townsend. Townsend defines poverty as relative deprivation caused by lack of resources. This conception, along with his corresponding cut-off measure, constitutes (...) some of the key components of his theory of poverty. The theory discusses what poverty is, its causes, and how it can be eradicated, and is detailed in Poverty in the United Kingdom: A Survey of Household Resources and Standards of Living (1979), his magnum opus. The primary aim of this thesis is to interpret the theory from Townsend’s adherence to the value-free ideal. He pursued this ideal in response to what he perceived as the pervasive and deleterious influence of moral and political values on measures, theories, and policies on poverty throughout its scientific and political history. I argue that to be free from such influence, Townsend aimed to be as guided by epistemic values as possible, which resulted in a systematic theory of poverty. -/- The thesis is structured as follows: In Chapter 1, I situate Townsend’s conception and measurement of poverty within the context of both the recent history of scientific poverty lines and the most important approaches to measuring the phenomenon. Chapter 2 discusses the systematic nature of the theory, including its role as a middle-range theory that bridges broad-range theories with empirical data. This connection is achieved through several elements: a conception of poverty; hypotheses and anthropological observations related to the elements of the conception; measures to test these hypotheses; an explanation of poverty; and reports on how the research was conducted. Furthermore, Townsend’s theory aligns with Bradburn et al.’s (2017) measurement theory, which asserts that a good measure must include a conception of the relevant phenomenon, a representation, and procedures to gather data. Additionally, all three components must be supported by arguments showing that they fit together properly. -/- In the remaining chapters, I present and discuss the main elements of the theory: his conception of poverty as relative deprivation caused by lack of resources, along with the related hypotheses and observations (Chapter 3); the representations of this conception and the procedures for data collection, processing, as well as ensuring their reliability (Chapter 4); and the explanation of poverty (Chapter 5). I conclude by presenting what Townsend considered the “policy prescriptions” of his theory. Despite its potential shortcomings, I also argue that Townsend’s theory fulfills an important epistemic value: fruitfulness. (shrink)

"Assim, este é o objetivo deste texto: mostrar como a literatura recente em torno de valores nas ciências pode nos ajudar a compreender melhor algumas das discussões em torno da mensuração da pobreza que foram suscitadas pelo trabalho de Peter Townsend. Apresentaremos primeiro o ideal da ausência de valor (seção 2), o que Townsend entendia por medidas objetivas e subjetivas (seção 3) e então poderemos compreender melhor o que é e quem não concorda com a posição de que a pobreza (...) é um juízo de valor (seção 4). Terminamos com as maneiras pelas quais é possível rejeitar essa posição (seção 5).". (shrink)

This paper develops and explores a new framework for theorizing about the measurement and aggregation of well-being. It is a qualitative variation on the framework of social welfare functionals developed by Amartya Sen. In Sen’s framework, a social or overall betterness ordering is assigned to each profile of real-valued utility functions. In the qualitative framework developed here, numerical utilities are replaced by the properties they are supposed to represent. This makes it possible to characterize the measurability and interpersonal comparability of (...) well-being directly, without the use of invariance conditions, and to distinguish between real changes in well-being and merely representational changes in the unit of measurement. The qualitative framework is shown to have important implications for a range of issues in axiology and social choice theory, including the characterization of welfarism, axiomatic derivations of utilitarianism, the meaningfulness of prioritarianism, the informational requirements of variable-population ethics, the impossibility theorems of Arrow and others, and the metaphysics of value. (shrink)

Due to the imperfect ability of individuals to discriminate between sufficiently similar alternatives, individual indifferences may fail to be transitive. I prove two impossibility theorems for social choice under indifference intransitivity, using axioms that are strictly weaker than Strong Pareto and that have been endorsed (sometimes jointly) in prior work on social choice under indifference intransitivity. The key axiom is Consistency, which states that if bundles are held constant for all but one individual, then society’s preferences must align with those (...) of that individual. Theorem 1 combines Consistency with Indifference Agglomeration, which states that society must be indifferent to combined changes in the bundles of two individuals if it is indifferent to the same changes happening to each individual separately. Theorem 2 combines Consistency with Weak Majority Preference, which states that society must prefer whatever the majority prefers if no one has a preference to the contrary. Given that indifference intransitivity is a necessary condition for the just-noticeable difference (JND) approach to interpersonal utility comparisons, a key implication of the theorems is that any attempt to use the JND approach to derive societal preferences must violate at least one of these three axioms. (shrink)

The article identifies real losses of foreign economic activity of industrial enterprises of Ukraine under the influence of modern challenges. The main purpose of the study is to implement a scientific and methodological approach to assess the impact of modern challenges on the development of foreign economic activity of enterprises. A critical analysis of the content of scientific publications on the studied issues revealed the lack of an integrated approach to establishing the real losses of foreign economic activity of enterprises (...) under the influence of modern challenges. The urgency of solving a certain problem is due to the scale of the impact of modern challenges on the dynamics of foreign economic activity of industrial enterprises, which requires an assessment of such an impact for the further development of measures that will be aimed at minimizing the negative impact of modern challenges. The methodological basis is the system of methods used to obtain the results of the study: theoretical generalization and analytical methods ‒ to clarify scientific approaches in determining the impact of modern challenges on the development of foreign economic activity of enterprises; generalization, grouping and integral evaluation ‒ to determine the level of influence of modern challenges on the development of foreign economic activity of industrial enterprises in 2013‒2021; relative and absolute deviations, coefficient analysis of changes in foreign trade turnover ‒ to establish the volume of losses of foreign economic activity of industrial enterprises of Ukraine under the influence of modern challenges; logical generalization ‒ to obtain conclusions and develop recommendations based on research results. The object of research in the work is the foreign economic activity of enterprises. The article presents the results of assessing the impact of modern challenges on the development of foreign economic activity of industrial enterprises, which became possible due to the developed and implemented author's scientific and methodological approach. Analysis and logical generalization of the results of assessing the impact of modern challenges on the development of foreign economic activity of industrial enterprises became the basis for determining the real volumes of losses of their foreign trade turnover. The results of the study have practical value for the Ministry of Economy of Ukraine and the Entrepreneurship and export promotion office, because they can serve as the basis for developing a program of recommendations for activating the export initiative of industrial enterprises under modern conditions. (shrink)

Precise measurements of well-being would be of profound societal importance. Yet, the sceptical worry that we cannot use social science instruments and tests to measure well-being is widely discussed by philosophers and scientists. A recent and interesting philosophical argument has pointed to the psychometric procedures of construct validation to address this sceptical worry. The argument has proposed that these procedures could warrant confidence in our ability to measure well-being. The present paper evaluates whether this type of argument succeeds. The answer (...) is that it depends on which methodological background assumptions are motivating the sceptical worry to begin with. We show this by doing two things. First, we clarify (a) the different types of well-being theories involved in the science of well-being, and (b) the general methodological dimensions of well-being theorising. Second, we apply these distinctions and argue that construct validation is an unsuccessful response to measurement scepticism if this scepticism is motivated by a form of methodological non-naturalism. In the light of this, the overall point of the paper is that philosophers and scientists, when discussing measurement of well-being, should explicate their deeper methodological commitments. We further suggest that making such explicit commitments might present philosophers with a dilemma. (shrink)

Measurement practices are central to most sciences. In the human sciences, however, it remains controversial whether the measurement of human attributes—depression, happiness, intelligence, etc.—has been successful. Are, say, widely used depression questionnaires valid measuring instruments? Can we trust self-reported happiness scales to deliver quantitative measurements as it is sometimes claimed? These and related questions are till today hotly disputed. There are two main frameworks under which human measurements are studied and criticized. One is the so-called construct validity framework. Here, criticisms (...) to human measurements are typically of the form “this instrument is not valid: it does not actually measure the attribute we set out to measure”. The second framework is the standard typology of measurement scales (nominal, ordinal, interval, and ratio). Human measurements are commonly challenged for being merely ordinal—not quantitative: interval or ratio—despite the fact that many researchers use measurement results as if they were quantitative. The first part of the dissertation studies how adequate these frameworks are for evaluating measuring instruments and the inferences they afford. Regarding the concept of validity, it is commonly understood unconditionally, that is, without restricting validity judgments about measuring instruments to context-specific situations. Instruments are said to be (in)valid simpliciter. In Chapter 2, I argue against this conception of validity and in favor of a contextual one. Regarding the second main framework, the standard typology of scales is typically linked to a set of prescriptions regarding (un)justified measurement inferences. I call this classification-cum-prescriptions the “received view” on measurement scales. In chapters 3 and 4, I question the idea that the received view is an impeccable guide for clarifying the kinds of inferences we are licensed to make from measurement results in human science contexts. I motivate general doubts about the adequacy of the received view in Chapter 3, and I articulate these doubts in detail for the specific case of average group comparisons in Chapter 4. The upshot of this first part of the dissertation is a deeper awareness of the complexity surrounding which inferences can legitimately be made from measuring instruments. The first part of the dissertation is largely framed under the assumption that some human attributes are indeed quantitative, even if they are not currently being measured quantitatively. The second part addresses two important issues raised by that assumption. Chapter 5 tackles the so-called “quantity objection”: that human science attributes are themselves not quantitative, thus they cannot be quantitatively measured. This objection has been deployed to argue against optimistic positions regarding human quantification. I argue that the quantity objection is not successful in this sense—it begs the question to these optimistic human scientists that, just like their colleagues in the physical sciences have done, postulate theoretical quantitative attributes as working hypotheses. But what does treating human attributes quantitatively as working hypotheses amount to? And what are, or can be, “amounts” of depression, happiness, etc.? Chapter 6 argues that there is not one but various approaches for quantitatively conceiving of human attributes, each with its own success conditions. This chapter offers a conceptual framework for making progress on debates about controversial human measurements. (shrink)

Is well-being the kind of thing that can be summed across individuals? This paper takes a measurement-theoretic approach to answering this question. To make sense of adding well-being, we would need to identify some natural "concatenation" operation on the bearers of well-being that satisfies the axioms of extensive measurement and can therefore be represented by the arithmetic operation of addition. I explore various proposals along these lines, involving the concatenation of segments within lives over time, of entire lives led alongside (...) one another or in sequence, and of evaluatively basic propositions via conjunction. All of these proposals turn out to carry highly controversial commitments about the good. I do not claim that these commitments are unacceptable. But they suggest that we cannot simply take for granted, as many philosophers do, that there is any such thing as the sum of well-being. (shrink)

It is an open question whether well-being ought to primarily be understood as a temporal concept or whether it only makes sense to talk about a person’s well-being over their whole lifetime. In this article, I argue that how this principled philosophical disagreement is settled does not have substantive practical implications for well-being science and well-being policy. Trying to measure lifetime well-being directly is extremely challenging as well as unhelpful for guiding well-being public policy, while temporal well-being is both an (...) adequate indirect measure of lifetime well-being, and an adequate focus for the purposes of improving well-being through public policy. Consequently, even if what we ought to care about is lifetime well-being, we should use temporal measures of well-being and focus on temporal well-being policies. (shrink)

Philosophers of well-being have tended to adopt a foundationalist approach to the question of theory and measurement, according to which theories are conceptually before measures. By contrast, social scientists have tended to adopt operationalist commitments, according to which they develop and refine well-being measures independently of any philosophical foundation. Unfortunately, neither approach helps us overcome the problem of coordinating between how we characterize well-being and how we measure it. Instead, we should adopt a coherentist approach to well-being science.

In this article, I offer a methodological analysis of the empirical research on the causal effects of trade liberalisation, and assess whether such studies can be of any use for guiding policy prescriptions in real-world economies. The analysis focuses on the mainstream economic research that has been used to support arguments in favour of trade liberalisation during the last decades. Even though there are empirical results that could be taken as valid evidence for a causal connection between free trade and (...) economic gains, none of the existing evidence licences trustworthy inferences about the policy effectiveness of trade liberalisation reforms in real-world cases. There are three aspects of the empirical literature that make it highly problematic for making reliable policy inferences: (a) the criteria used to define the notion of ‘free trade’, (b) the background assumptions embedded in the econometric techniques used for estimating causal effects, and (c) the widespread desire among academic economists to attain scientific results in terms of universally valid generalisations. The analysis exposes a worrisome mismatch between, on the one hand, the research aims and outcomes of scientific economics and, on the other, the kind of evidence that would be useful for guiding actual policy deliberations. (shrink)

This paper is about the role of interpersonal comparisons in Harsanyi's aggregation theorem. Harsanyi interpreted his theorem to show that a broadly utilitarian theory of distribution must be true even if there are no interpersonal comparisons of well-being. How is this possible? The orthodox view is that it is not. Some argue that the interpersonal comparability of well-being is hidden in Harsanyi's premises. Others argue that it is a surprising conclusion of Harsanyi's theorem, which is not presupposed by any one (...) of the premises. I argue instead that Harsanyi was right: his theorem and its weighted-utilitarian conclusion do not require interpersonal comparisons of well-being. The key to making sense of this possibility is to treat Harsanyi's weights as dimensional constants rather than dimensionless numbers. (shrink)

Matthew Adler's Measuring Social Welfare is an introduction to the social welfare function (SWF) methodology. This essay questions some ideas at the core of the SWF methodology having to do with the relation between the SWF and the measure of well-being. The facts about individual well-being do not single out a particular scale on which well-being must be measured. As with physical quantities, there are multiple scales that can be used to represent the same information about well-being; no one scale (...) is special. Like physical laws, the SWF and its ranking of distributions cannot depend on exactly which of these scales we use. Adler and other theorists in the SWF tradition have used this idea to derive highly restrictive constraints on the shape of the SWF. These constraints rule out seemingly plausible views about distributive justice and population ethics. I argue, however, that these constraints stem from a simple but instructive mistake. The SWF should not be applied to vectors of numbers such as 1 and 2, but rather to vectors of dimensioned quantities such as 1 util and 2 utils. This seemingly pedantic suggestion turns out to have far-reaching consequences. Unlike the orthodox SWF approach, treating welfare levels as dimensioned quantities lets us distinguish between real changes in well-being and mere changes in the unit of measurement. It does this without making the SWF depend on the scale on which welfare is measured, and in a way that avoids the restrictive constraints on the shape of the SWF. (shrink)

Behavioural economics has taught us that human agents don't always display consistent, context-independent and stable preferences in their choice behaviour. Can we nevertheless do welfare economics...

The observation that concepts used by social scientists are often problematic is not new; they have been described as Ballung concepts, cluster concepts, essentially contested, and reflexive; however, the need to work with these concepts remains. This article addresses the problem of variable choice in the social sciences by exploring and extending Woodward’s recommendations. This article demonstrates why Woodward’s criteria are difficult to apply in the social sciences and proposes an alternative, but complementary, framework for assessing variables.

Generating an account that can sidestep the disagreement among substantive theories of well-being, while at the same time still providing useful guidance for well-being public policy, would be a significant achievement. Unfortunately, the various attempts to remain agnostic regarding what constitutes well-being fail to either be an account of well-being, provide useful guidance for well-being policy, or avoid relying on a substantive well-being theory. There are no theory-free lunches in well-being policy. Instead, I propose an intermediate account, according to which (...) well-being is constituted by endorsed veridical experiences. This account refers back to theories of well-being but does so as agnostically as possible. An intermediate account of well-being is meant as a policy guiding compromise between the different theories of well-being that make claims regarding what constitutes well-being. An intermediate account does as well as can be hoped for in providing a basis for well-being policy. (shrink)

Volume 26, Issue 4, December 2019, Page 380-384.

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)

Research in the History of Economic Thought and Methodology (RHETM) is a journal/book series dedicated to an interdisciplinary approach to a broad range of topics related to the history and methodology of economics. Volumes are divided into four parts: a monothematic section dedicated to research articles focused on a particular issue in the journal’s core fields of interest, a section including research articles of a more general nature, a section of newly-discovered archival materials, and a section of review essays on (...) new works in the history and methodology of economics. Founded by Warren Samuels in 1982, Research in the History of Economic Thought and Methodology is one of the oldest publication outlets in the fields of economic methodology and the history of economic thought. (shrink)

The notion of “worth” and “value” throughout human history was only partly dependent on economic reasons. Arrangements about what is considered an equivalent value/measure of wealth are the result of complex interdependencies of economic, social and cultural factors. For thousands of years people have used precious metals as universal equivalent and main measure of wealth; full-value metal money was, in fact, only reinforced by the authority of state (ruler) evidence of presence certain amount of precious metal. The rejection of valuable (...) coins and the provision of banknotes with precious metals (that is, the rejection of the gold and the silver standard) led to the fact that the circulating money signs in the society ceased to denote a concrete value, becoming an abstraction, putting the population in dependence on state’s monetary policy and financial stability of national economy. Bitcoin and its numerous alternatives arose as a response to the challenge of informatization, globalization and individualization of economic activity. This is an attempt to escape from control of state structures that are inclined to abuse their right to issue banknotes and to voluntaristic methods of managing the economy. To some extent, the cryptocurrencies reflect the nostalgia of market participants on the gold standard, which is surprisingly transformed into a complete denial of the materiality (including the metal substance) of money. This situation stimulates the search for new models for designation the equivalent value in the information society. (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)

We reexamine some of the classic problems connected with the use of cardinal utility functions in decision theory, and discuss Patrick Suppes's contributions to this field in light of a reinterpretation we propose for these problems. We analytically decompose the doctrine of ordinalism, which only accepts ordinal utility functions, and distinguish between several doctrines of cardinalism, depending on what components of ordinalism they specifically reject. We identify Suppes's doctrine with the major deviation from ordinalism that conceives of utility functions as (...) representing preference differences, while being non- etheless empirically related to choices. We highlight the originality, promises and limits of this choice-based cardinalism. (shrink)

Монографія розкриває нове вирішення важливого науково-прикладного завдання, що полягає у поглибленні існуючих, розробленні й обґрунтуванні нових науково-методичних положень управління стратегічними можливостями машинобудівних підприємств на основі комплексного діагностування стратегічних можливостей, врахування ступеня загрози кризового стану, обґрунтування пріоритетності їх використання в процесі реалізації стратегії розвитку машинобудівних підприємств. Здійснено теоретико-методичне обґрунтування стратегічних можливостей підприємства та розкрито концептуальні засади управління ними. Досліджено стратегічні можливості машинобудівних підприємств України та стан управління ними. Розроблено напрямки удосконалення підходів в управлінні стратегічними можливостями машинобудівних підприємств. Видання розраховане на наукових (...) працівників, викладачів вищих навчальних закладів, спеціалістів у сфері економіки та управління підприємствами. (shrink)

Policy-makers sometimes aim to improve well-being as a policy goal, but to do this they need some way to measure well-being. Instead of relying on potentially problematic theories of well-being to justify their choice of well-being measure, Daniel Hausman proposes that policy-makers can sometimes rely on preference-based measures as evidence for well-being. I claim that Hausman’s evidential account does not justify the use of any one measure more than it justifies the use of any other measure. This leaves us at (...) a loss as to which policy should be chosen in the non-trivial cases for which there is substantial disagreement between the different measures in their assessment of policy. (shrink)

This article illustrates how axiomatic social choice theory can be used in the evaluation of measures of group fitness for a biological hierarchy, thereby contributing to the dialogue between the philosophy of biology and social choice theory. It provides an axiomatic characterization of the ordering underlying the MichodSolariNedelcu index of group fitness for a multicellular organism. The MVSHN index has been used to analyse the germ-soma specialization and the fitness decoupling between the cell and organism levels that takes place during (...) the evolutionary transition to multicellularity. It is argued that some of the axioms satisfied by the MVSHN group fitness ordering are not appropriate for all stages in this transition. (shrink)

In traditional decision theory, utility is regarded as a mathematical representation of preferences to be inferred from agents hedonic experiences. Some go as far as to contend that utility is literally computed by specific neural areas and urge economists to complement or substitute their notion of utility with some neuro-psychological construct. In this paper, I distinguish three notions of utility that are frequently mentioned in debates about decision theory and examine some critical issues regarding their definition and measurability. Moreover, I (...) provide various empirical and conceptual reasons to doubt that economists should base decision theoretic analyses on some neuro-psychological notion of utility. (shrink)

The World Development Report 2012: Gender Equality and Development has recently confirmed the widely held belief that women across the world tend to perform different work from men who otherwise are situated similarly. Women also work longer hours than similarly situated men. In analyzing the justice of these gendered disparities in time-use, WDR 2012 uses a moral framework that is largely distributive. Although this framework illuminates some aspects of the injustice of the situation, I contend that it obscures other crucial (...) aspects, making the analysis inadequate overall. I argue that a more comprehensive and illuminating moral understanding can be reached by analyzing these time-use disparities in terms of global gendered exploitation. This alternative framework also better enables identifying those politically responsible for the injustice and points toward a vision of global gender justice that is morally more plausible. (shrink)

This article explains some moral dimensions of a transnational feminist research project designed to provide a better standard or metric for measuring poverty across the world. The author is an investigator on this project. Poverty metrics incorporate moral judgments about what is necessary for a decent life, so justifying metrics requires moral argumentation. The article clarifies the moral aspects of poverty valuation, indicates some moral flaws in existing global poverty metrics, and outlines some conditions for a better global metric. It (...) then explains the methodology used in our project, providing its moral rationale and discussing some remaining moral concerns. (shrink)

This article reflects critically on the methodology of one feminist research project which is ongoing as we write. The project is titled “Assessing Development: Designing Better Indices of Poverty and Gender Equity” and its aim is to develop a better standard or metric for measuring poverty across the world. The authors of this article are among several philosophers on the research team, which also includes scholars from the disciplines of anthropology, sociology and economics. This article begin by explaining why a (...) new and better poverty metric is needed and why developing such a metric requires an alternative methodological approach inspired by feminism. It then describes our methodological goals and strategies and summarizes our research findings, showing how they diverge from standard assessments as a result the feminist methods we used. We conclude with some methodological lessons we learned and questions that we think remain to be addressed. (shrink)

The thesis studies the problem of measuring freedom of choice. It analyzes the concept of freedom of choice, discusses conditions that a measure should satisfy, and introduces a new class of measures that uniquely satisfy ten proposed conditions.

During the last two centuries, the way economic science is done has changed radically: it has become a social science based on mathematical models in place of words. This book describes and analyses that change - both historically and philosophically - using a series of case studies to illuminate the nature and the implications of these changes. It is not a technical book; it is written for the intelligent person who wants to understand how economics works from the inside out. (...) This book will be of interest to economists and science studies scholars. But it also aims at a wider readership in the public intellectual sphere, building on the current interest in all things economic and on the recent failure of the so-called economic model, which has shaped our beliefs and the world we live in. (shrink)

The financial crash of 2008 following the selling of fictitious derivatives was a crisis of both rationality and values whose aftermath has thrown the legitimation of deregulated markets, and governments, into question. This paper critiques the Becker metaphor of human capital and submits that human value is central to and the fulcrum of both economic and social values. It illustrates that Hume and Adam Smith directly countered the Hobbesian hypothesis that human nature is based only on self-interest, distinguishes market values (...) from social values, explicit from implicit values and parallels Sen in adopting an ordinal ranking of what people value rather than a search for cardinality. It draws on cognitive psychology, neural research, revealed preference theory and a principle of implicit verification. It also outlines implications for what Adam Smith centrally valued as concern for the welfare of the whole of society. (shrink)

In this essay I discuss a person’s freedom to choose whatever that person may reasonably prefer to choose. This type of freedom of choice may be regarded as a candidate for a social good, being a hybrid between freedom of choice and preference satisfaction utility. To separate this preference dependent freedom of choice from other types, we may call it opportunity. The essay is concerned with the question of how opportunity should be identified and measured. I discuss what conditions an (...) opportunity measure should satisfy and propose that an opportunity measure should satisfy at least four specific conditions. I then present a new class of measures which satisfy the four conditions (the Root measures). Last I prove that these measures are the only ones that satisfy the conditions, given the extra assumption that the measures are analytic functions with non-zero partial derivatives. (shrink)

Graphical models are a powerful tool for causal model specification. Besides allowing for a hierarchical representation of variable interactions, they do not require any a priori specification of the functional dependence between variables. The construction of such graphs hence often relies on the mere testing of whether or not model variables are marginally or conditionally independent. The identification of causal relationships then solely requires some general assumptions on the relation between stochastic and causal independence, such as the Causal Markov Condition (...) and the Faithfulness Condition (Spirtes et al. 2000; Pearl 2000). However, a procedure would require further assumptions to hold. Namely those the independence tests themselves are based on. In continuous settings, Spirtes et al. (2000) suggest causal inference based on a very restrictive formulation of independence, that is, vanishing partial correlations. Such a measure does, however, limit the applicability of causal inference to linear systems. This constitutes a serious drawback especially for the social sciences where an a priori specification of the functional form proves difficult or at odds with linearity. In short: graphical models theoretically reduce specification uncertainty regarding functional dependence, but their implementation in practice deprives them of this virtue. In this paper we investigate how causal structures in continuous settings can be identified when both functional forms and probability distributions of the variables remain unspecified. We focus on tests exploiting the fact that if X and Y are conditionally independent given a set of variables Z, the two conditional densities f (X|Y, Z) and f (X|Z) must coincide. We start by estimating the conditional densities f(X|Y, Z) and f(X|Z) via nonparametric techniques (kernel methods). We proceed by testing if some metric expressing the distance between these very conditional densities is sufficiently close to zero. Out of several metrics available in the literature to express such distance we choose two, the Euclidean, and the Hellinger distance. We investigate in a Monte Carlo study how different tests involving either measure are able to detect statistical independence, conditioned on a small set of variables. One limitation may result from nonparametric density estimation being subject to the curse of dimensionality. As the number of variables increases, the estimated empirical density converges at a slower rate to its population value. To compensate this drawback we use a local bootstrap procedure which consists of resampling the data for each test. While local bootstrap strongly increases the computational time of the test, it succeeds in counterbalancing the curse of dimensionality. (shrink)

This article develops a new measure of freedom of choice based on the proposal that a set offers more freedom of choice than another if, and only if, the expected degree of dissimilarity between a random alternative from the set of possible alternatives and the most similar offered alternative in the set is smaller. Furthermore, a version of this measure is developed, which is able to take into account the values of the possible options.

We would like to thank Ian Carter and Matthew Kramer for their challenging reply to our recent article. Dowding and van Hees is one of a series of articles in which we try to address measurement issues with regard to individual freedom. Our aim is to provide a conception of freedom that will eventually yield a way of measuring the relative freedom of groups of people within a society and a relative measure of freedom across societies. In doing so, we (...) draw upon the important work of Carter and Kramer, but as should be clear, we also depart from it in several respects. (shrink)