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

The economic and moral defense of sweatshops given by Powell and Zwolinski has been criticized in two recent papers. Coakley and Kates focus on putative weaknesses in the logic of Powell’s and Zwolinski’s argument. Preiss :55–82, 2014) argues that, even granting the validity of their economic argument, Powell’s and Zwolinski’s defense is without force when viewed from a Kantian republican viewpoint. We are concerned that sweatshop critics have misinterpreted the economic literature and overstated the conclusions that follow (...) from their ethical premises. We show that the best understanding of the current economic literature supports Powell’s and Zwolinski’s conclusions about the negative effects of sweatshop wage regulation, and that it is unreasonable to reject economic analysis in moral argument against sweatshops even from a Kantian perspective. Additionally, we defend the theory of exploitation as unfairness given by Wertheimer, and show how economic analysis can be applied to that theory to identify cases of sweatshop exploitation. (shrink)

This paper discusses recent attempts by economists to analyze institutional structure using individualist methodology. It is argued that developments in game theory, as well as advances in the analysis of transactions costs, have proved surprisingly fertile in yielding insights into the nature and structure of institutions. The example of the university is used to illustrate the ways in which the economic approach to institutions can be applied. In particular, the nature of academic contracts and the non?profit status of (...) universities are related to the literature on contractual hazards. Although methodologically very different from sociological or historical analysis of institutions, it is argued that the new institutional economics may provide a bridge permitting greater contact between hitherto almost entirely separate disciplines. (shrink)

Emotional labor generally exists in organization members. Emotional labor will not only affect employees’ interpersonal relationships, but also affect employees’ mental health. Affected by many factors such as the economic environment, they often need to bear multiple pressures. The degree of stress is positively correlated with the depth of the development of the times and people’s education. As mental health research has become the frontier and hot spot in the field of psychology, the role of mental health in the (...) process of employee creativity has been paid more and more attention. Therefore, this paper proposes a study on the causes of employees’ psychological stress based on emotional feature clustering. Based on the clustering of emotional characteristics, this paper analyzes the causes of employees’ mental health stress from an economic perspective. For teams with low level of team openness, with the improvement of team heterogeneity, team task performance shows a slight upward trend. It is clear from the experiment that when the number of experiments reaches 100, the task performance of high atmosphere level is 12.14, while the task performance of low atmosphere level is only 9.89. Therefore, the atmosphere of team employees is very important to team task performance. Through the cluster analysis of employees’ mental health characteristics, it not only increases employees’ spare time life, but also reduces employees’ daily contradictions. It eases the work pressure of employees, and becomes a platform for employees to improve their awareness and a promoter of harmonious employee relations. (shrink)

Economic concepts and methods are used to throw light on some aspects of common-sense ethics and the difference between it and Utilitarianism. (1) Very few exceptions are allowed to the rules of common-sense ethics, because of the cost of information required to justify an exception to Conscience and to other people. No such stringency characterizes Utilitarianism, an abstract system constructed by philosophers. (2) Rule Utilitarianism is neither consistent with common-sense ethics, nor does it maximize utility as has been claimed (...) for it. The same is true of more recent variants of Utilitarianism. (3) Second best and first best are usually identical in common-sense ethics. They are often identical in Utilitarianism when a moral situation can be represented by a Prisoner's Dilemma. However, problems arise in permissive forms of Utilitarianism when it is not obvious that second best should be applied. (shrink)

Understanding moral philosophy can help one to do economics better, and philosophers can learn by drawing on economic insights and analytical tools. This book argues that standard views of rationality lead economists to espouse questionable moral principles, and discusses methods of economic evaluation in terms of welfare and other moral criteria. It also contains a brief discussion of the relevance of social choice and game theory to philosophy. There is a glossary and at the end of each chapter (...) are suggestions for further reading. (shrink)

An institutional auditing program typically consists of the following steps: a sample audit, the decision to move to the full audit, a settlement offer, and the full audit. Statistical sampling techniques are often used to estimate the overbilling percentage and amount. This paper discusses the optimal settlement offer, the net recovery through auditing, the condition for the auditors to move to the full audit, and how an auditing program can be truly cost-effective. This paper provides an evaluation for the statistical (...) sampling techniques to an auditing program. The economic incentives of a contractor to overbill are also identified. Finally, it presents the key metrics and the managerial implications for auditing managers to design or enhance their auditing programs. (shrink)

This book reviews the spectrum of economic methods that have been developed from themid-1970s to the mid-1980s to analyze the feasibility of solar systems and shows how the use ofthese techniques has influenced federally sponsored research, development, and demonstrationprograms.

This work on index-number construction focuses on production indexes, including output and input deflators that can be used for constructing real output and real input. Fisher and Shell treat separately the different production units: the firm, the industry, and the economy, as well as the different forms of industrial organization: monopoly, monopsony, and competition. Only in the simplest cases is the appropriate theory isomorphic to that of the cost-of-living index because of the interlinkages among the various production units. A firm (...) cannot always assume that the behavior of its competitors, suppliers, and customers will be unaffected by price changes and only in special cases can an industry take supply and demand conditions as given. (shrink)

Though nominally exercised on behalf of private citizens, constitutional judicial review does perform an insurance function for politicians who expect to lose power in future elections. This paper discusses the various dimensions of institutional design of constitutional courts and argues that the extent and power of judicial review can be expected to increase relative to the degree of political uncertainty at the time of constitutional design. The paper then develops a simple empirical test of this hypothesis using data from Eastern (...) Europe, regressing measures for various aspects of court design on the strength of the largest party in the legislature. The paper shows that the design of constitutional courts reflects the interests of the dominant political parties and that independent and powerful courts are associated with situations of divided or deadlocked politics. (shrink)

It is undeniable that health care costs have been increasing at an alarming rate. During the ten-year period between 1983 and 1993, the medical care component of the Consumer Price Index rose at an average annual rate of 10 percent while the overall CPI increased by only 4.5 percent per year. These dramatic increases have obvious societal implications. For those without health insurance, a serious illness may mean personal bankruptcy. For those with health insurance coverage, premiums are rising while coverage (...) is shrinking. Employers are struggling to continue providing health insurance to their employees. Irrespective of whose fault it really is, much of the blame has been directed at health care providers.Faced with mounting criticism regarding the costs of delivering health care, the industry struck back. It claimed that collaboration—not competition—was necessary to reduce health care costs and improve efficiency, but that antitrust uncertainty deterred such collaborative efforts. (shrink)

It is undeniable that health care costs have been increasing at an alarming rate. During the ten-year period between 1983 and 1993, the medical care component of the Consumer Price Index rose at an average annual rate of 10 percent while the overall CPI increased by only 4.5 percent per year. These dramatic increases have obvious societal implications. For those without health insurance, a serious illness may mean personal bankruptcy. For those with health insurance coverage, premiums are rising while coverage (...) is shrinking. Employers are struggling to continue providing health insurance to their employees. Irrespective of whose fault it really is, much of the blame has been directed at health care providers.Faced with mounting criticism regarding the costs of delivering health care, the industry struck back. It claimed that collaboration—not competition—was necessary to reduce health care costs and improve efficiency, but that antitrust uncertainty deterred such collaborative efforts. (shrink)

This is the first definitive graduate and advanced undergraduate level treatment of behavioral economics that describes the cutting edge of the subject. It carefully outlines the evidence, describes the relevant theory, and provides interesting and economically relevant applications of the theory. Behavioral economics is not only the fastest growing area in economics but it is rapidly going mainstream, and it is most likely to be the future of economics. The field has lacked a definitive treatment- this is it. The book (...) covers most areas in economics, which accounts for its length. Behavioral economics not only explains the evidence much better, it is fun to do relative to the dismal science of traditional economics; this book conveys both these aspects. (shrink)

The role of small business enterprise in a mature market economy is one of the major issues in contemporary industrial organization, and is the focus of this book. _Small Business Enterprise_ brings new standards of rigour and insight into the study of small firms by importing contemporary ideas from industrial economics and by using up-to-date statistical and econometric techniques. Based on a uniquely rich set of data, _Small Business Enterprise_ focuses on the early period after start-up of the small firm. (...) It investigates competitive niches and how they are established, determinants of growth and profitability, the factors fostering survivial, and many other central issues. This core of economic analysis is complemented by an innovative case profile approach, which considers the real behaviour of small firms in a competitive environment; and a section on the political economy of small firms, which looks at the ethics of competition and the enterprise culture. (shrink)

This collection uses economic analysis to study some of the most pressing issues in corporate law. The last decade has brought certain corporate transactions and arrangements to the forefront of public attention and public debate. At the same time, a new mode of corporate law analysis has been developed - one that uses the tools of economics to identify the consequences and desirable features of corporate law rules. By bringing together work at the frontier of this method (...) of analysis, the volume provides a good picture of the power, current state, and future direction of the economic analysis of corporate law. Written by some of the most prominent contributors to the field, many of the chapters focus directly on the corporate control transactions that have recently attracted the most interest and controversy - corporate takeovers, buy-outs, recapitalizations, and reorganizations. (shrink)

The unprecedented rise and fall in silver's price during 1979 and 1980 resulted in charges against the Hunt brothers of Dallas of monopolization and market manipulation, charges which led to a lengthy trial. This book focuses on the economic analysis used at this trial. Drawing upon interviews with the judge, jury, attorneys and expert witnesses, it investigates the elusive definition of manipulation in sophisticated markets, the difficulties of interpreting statistical evidence, the imprecision in calculating damages, the hidden assumptions (...) behind inferences concerning intent, and the hazards introduced when economic analysis enters complex litigation. The author concludes that these problems induce courtroom procedures to oversimplify the economic analysis and cause the law on market manipulation to be created retroactively. Yet the failure lies not with the legal institutions but with the futures exchanges who had not developed in advance the rules to minimize large-scale trading during the unusual price moves. (shrink)

In this paper we focus on the structural approach and structural method developed from Sampedro’s work. We propose that this approach is inside the systemic paradigm and it has two interdependent and necessary ideas. On the one hand, we take as a reference some schools of thought in economics and the structural method with two stages. On the other hand, some macroeconomic principles has been derived from the vision and the methodology, which give the structural approach an analytical, synthetic, aggregate (...) and historiographical character. In this sense, the main argument is that structural analysis has its own macro-theoretical characterization. In this way, the structural approach allows valid analysis in order to increase our knowledge of the economic reality. En este trabajo se realiza una aproximación al enfoque y método estructural, a partir de los conceptos postulados en la obra de Sampedro y su posterior inclusión dentro de un paradigma sistémico, distinguiéndose dos pilares interdependientes y mutuamente necesarios. Por un lado, para tratar los aspectos epistemológicos se distinguen las escuelas consideradas de referencia en economía y se detalla el método estructural basado en la etapa descriptiva y la de síntesis. Por otro lado, se tratan los principios macroeconómicos que se derivan de la visión y de la metodología y que otorgan al enfoque estructural un carácter analítico, sintético, agregado e historiográfico. En este sentido la tesis principal del artículo es que el análisis estructural posee una caracterización macroeconómica propia que permite realizar análisis válidos de modo sistemático, con el propósito de aumentar los conocimientos sobre la realidad económica. (shrink)

This is the sixth edition of a textbook that has been instrumental in introducing a generation of students to the history of economic thought. It charts the development of economics from its establishment as an analytical discipline in the eighteenth century through to the late twentieth century. The book discusses the work of, amongst others: Ricardo, Malthus, Marx, Walras, Marshall and Keynes as well as the institutionalists, the Chicago School and the emergence of econometrics. This edition has been fully (...) revised and updated and includes: * chronologies of the key dates in the development of economics * extracts from original texts * an examination of how the study of the history of economic thought impinges upon modern thinking. (shrink)

Now in its seventh edition, Ingrid Rima's classic textbook charts the development of the discipline from the classical age of Plato and Aristotle, through the middle ages to the first flowering of economics as a distinct discipline - the age of Petty, Quesnay and Smith - to the era of classical economics and the marginalist revolution. The book then goes on to offer extensive coverage of the twentieth century - the rise of Keynesianism, econometrics, the Chicago School and the neoclassical (...) paradigm. The concluding chapters analyze the birth of late twentieth century developments such as game theory, experimental economics and competing schools of economic thought. This text includes a number of practical features: a "family tree" at the beginning of each section, illustrating how the different developments within economics are interlinked the inclusion of readings from the original key texts a summary and questions to discuss, along with glossaries and suggestions for further reading This book provides the clearest, most readable guide to economic thought that exists and encourages students to examine the relevance of the discipline's history to contemporary theory. (shrink)

Some of the best philosophers do not hold academic appointments in philosophy departments. Wouldn't you rather have the ghost of Frank Ramsey (the Cambridge mathematician who died in the 1920s) as a hall mate instead of some of your current colleagues? Confining our attention to the living, we find some economists among the more philosophically inclined intellectuals. The best of these fellow traveling economistphilosophers are the Nobel Prize winner Amartya Sen and also John Roemer. In the early 1980s Roemer did (...) brilliant work on the analytical foundations of Marxist theory. He has also accomplished an imaginative retooling of the Lange-Lerner models of market socialism. For the past dozen years or so Roemer has been thinking and writing about distributive justice. This work has culminated in the two impressive books that are the subject of this review essay. Theories of Distributive Justice is explicitly a bridge-building effort. Roemer announces that his aim is to provide a philosophical perspective on recent writings by economists that are relevant to the topic of distributive justice and to provide an economist's perspective on recent writings by philosophers on distributive justice. He further announces that his primary aim is to facilitate traffic in one direction--to interpret and formulate the ideas of contemporary philosophers on distributive justice so as to introduce them to economists with a view to increasing the philosophical sophistication of work by economists on these normative issues. I endorse this aim. But since I am not a trained economist, I shall not attempt to assess the extent to which this project is successfully completed. This review explores the adequacy of Roemer's survey of contemporary theories of justice and the philosophical interest of his own contributions to debates about distributive justice. These Roemerian contributions appear interspersed among critical discussions in Theories of Distributive Justice as well as in the more recent monograph Equality of Opportunity. 1.. (shrink)

ABSTRACT:This article considers the economic case for so-called sweatshop wages and working conditions. My goal is not to defend or reject the economic case for sweatshops. Instead, proceeding from a broadly pluralist understanding of value, I make and defend a number of claims concerning the ethical relevance of economic analysis for values that different agents utilize to evaluate sweatshops. My arguments give special attention to a series of recent articles by Benjamin Powell and Matt Zwolinski, which (...) represent the latest and best defense of the economic case for sweatshops. In the process, I challenge Zwolinski’s “non-worseness claim” (NWC), and the idea that opposition to sweatshop wages and working conditions fails to respect that the autonomy of would-be sweatshop workers. Ultimately, I conclude that even if the economic case for sweatshops rests on a solid empirical foundation, agents possess good reason to advocate for better wages and working conditions for sweatshop workers, and to prefer less exploitative or coercive relationships. Sweatshop labor undermines a compelling vision of free markets, according to both Kantian and republican conceptions of freedom, and the relationships formed by those who participate in such markets. (shrink)

ABSTRACT:This article considers the economic case for so-called sweatshop wages and working conditions. My goal is not to defend or reject the economic case for sweatshops. Instead, proceeding from a broadly pluralist understanding of value, I make and defend a number of claims concerning the ethical relevance of economic analysis for values that different agents utilize to evaluate sweatshops. My arguments give special attention to a series of recent articles by Benjamin Powell and Matt Zwolinski, which (...) represent the latest and best defense of the economic case for sweatshops. In the process, I challenge Zwolinski’s “non-worseness claim”, and the idea that opposition to sweatshop wages and working conditions fails to respect that the autonomy of would-be sweatshop workers. Ultimately, I conclude that even if the economic case for sweatshops rests on a solid empirical foundation, agents possess good reason to advocate for better wages and working conditions for sweatshop workers, and to prefer less exploitative or coercive relationships. Sweatshop labor undermines a compelling vision of free markets, according to both Kantian and republican conceptions of freedom, and the relationships formed by those who participate in such markets. (shrink)

How do altruistic links affect allocative behavior and wellbeing? Can the processes of transmission and probable acquisition of parental traits result in a stable equilibrium where all agents are altruists? Why do children furnish their parents with attention and care? Does the timing of the intergenerational transfer of the family's productive asset affect the recipient's incentive to acquire human capital? Why do migrants remit? Altruism and Beyond provides answers to these and related questions. In addition, it traces some of the (...) market repercussions of the intrafamilial, intergenerational, and intragroup transfers and exchanges that it models. (shrink)