normative economics


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normative economics

the study of what ‘ought to be’ in economics rather than what ‘is’. For example, the statement that ‘people who earn high incomes ought to pay more income tax than people who earn low incomes’ is a normative statement. Normative statements reflect people's subjective value judgements of what is good or bad and depend on ethical considerations such as ‘fairness’ rather than strict economic rationale. The actual economic effects of a taxation structure that taxes the rich more heavily than the poor (on spending and saving, for example) is a matter for POSITIVE ECONOMICS. See WELFARE ECONOMICS.
Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005
References in periodicals archive ?
Indeed, if we take normative economics in this latter sense, then not only the twofold division but also the existence of a distinctive normative economics makes little sense (also see Hands 2012).
Nevertheless, there is a clear distinction between positive and normative economics. Positive economics is limited to description and prediction.
foundation) of individual preferences in mainstream economics and the way that this skews normative economics towards the discussion of preference satisfaction and away from the character of the preferences.
Only in a philosophy at the polar opposite of standard normative economics could the state claim parenthood over adult citizens.
This article discusses how this anomaly manifests itself in Jamaica's valuation practice, explains how the valuer's reliance on normative economics contributes to this situation, and presents recommendations for improving valuation standards and accuracy.
They are entering the area of normative economics. Dolan unfairly condemns the entire "neoclassical approach" for this error.
Heyne agrees with Tiemstra that the bright line that many economists see between positive and normative economics does not exist.
Yes, indeed, there is a difference in the definition between positive economics, describing what is, and normative economics, describing what should be.
Calvinist economics inspired by Kuyper is a typical expression of normative economics. It starts from the idea that science cannot and should never be value-free and neutral, for example, because it always commits itself to higher political, ethical, and religious ideals.
Utilitarianism and normative economics are often confused, according to Posner.
Mosini asserts that F53 makes two related claims: (1) positive and normative economics are distinct, and (2) positive analysis is independent of normative concerns, but normative concerns are dependent on positive analysis.
The work "Wealth of Nations" also provided the distinction between positive economics and normative economics to occur.