The Oxford Handbook of Ethics and Economics (Oxford Handbooks)

Presentación del editor: "Economics and ethics are both valuable tools for analyzing the behavior and actions of human beings and institutions. Adam Smith, the father of modern economics, considered them two sides of the same coin, but since economics was formalized and mathematicised in the late 1800s and early 1900s, the fields have largely followed separate paths. The Oxford Handbook of Ethics and Economics provides a timely and thorough survey of the various ways ethics can, does, and should inform economic theory and practice. The first part of the book, Foundations, explores how the most prominent schools of moral philosophy relate to economics; asks how morals relevant to economic behavior may have evolved; and explains how various approaches to economics incorporate ethics into their work. The second part, Applications, looks at the ethics of commerce, finance, and markets; uncovers the moral dilemmas involved with making decisions regarding social welfare, risk, and harm to others; and explores how ethics is relevant to major topics within economics, such as health care and the environment. With esteemed contributors from economics and philosophy, The Oxford Handbook of Ethics and Economics is a resource for scholars in both disciplines and those in related fields. It highlights the close relationship between ethics and economics in the past while and lays a foundation for further integration going forward." Cover The Oxford Handbook of ETHICS AND ECONOMICS Copyright Acknowledgments Table of Contents List of Figures List of Tables Notes on Contributors Introduction References Part I: FOUNDATIONS A. ETHICAL THEORIES IN ECONOMICS Chapter 1: Adam Smith and the Study of Ethics in a Commercial Society 1.1 Introduction 1.2 Adam Smith’s Theory of Markets 1.3 Adam Smith’s Theory of Ethics 1.4 Adam Smith on Ethics and Markets 1.4.1 The Limits of Benevolence 1.4.2 The Potential for Corruption 1.4.3 The Possibility of Moral Development 1.5 Conclusion References Chapter 2: Virtue and Economics, Horse and Cart 2.1 Virtue and Economics 2.2 What Is Virtue? 2.3 The Economic Way of Thinking 2.4 Fitting Virtue to GenerallyEthical Behavior 2.5 Conclusion References Chapter 3: With All Due Respect: A Kantian Approach to Economics 3.1 Deontology and Kantian Ethics 3.2 Kantian Duties in Models of Economic Choice 3.2.1 Perfect and Imperfect Duties 3.2.2 Judgment and Willpower 3.3 Applications of Kantian-Economic Choice 3.4 Kantian Implications for Welfare Economics, Policy, and Markets 3.4.1 Utilitarianism, Kaldor-Hicks, and Pareto 3.4.2 Rights, Wrongs, and Externalities 3.4.3 The Nature and Regulation of the Market 3.5 Conclusion References Chapter 4: Ethical Pluralism in Economics 4.1 Introduction 4.2 Bridging Ethical Boundaries 4.2.1 Horizontal and Vertical Pluralism 4.2.2 Modeling Markets and Human Behavior 4.3 Consequentialist Evaluations of Human Welfare 4.3.1 Neoclassical Welfare Theory 4.3.2 Pareto Efficiency 4.3.3 Kaldor-Hicks Efficiency 4.3.4 Other Goals and Methodologies 4.4 Economists as Ethicists 4.4.1 Code of Professional Conduct 4.4.2 Why a Code is Not Sufficient 4.5 Arguments Against Plurality 4.5.1 Ultimate Ends 4.5.2 Unifying across Frameworks 4.5.3 Relativism 4.6 Conclusion Acknowledgments References Chapter 5: Economic Ethics and the Capability Approach 5.1 Introduction 5.2 What Is the Capability Approach? 5.3 Freedom and the Capability Approach 5.4 Well-Being and the Capability Approach 5.5 The Capability Approach in Economic Ethics 5.5.1 How Does the Capability Approach Make a Difference in Assessing Economic Institutions and Systems? 5.5.2 How Should the Capability Approach Be Further Developed for the Assessment of Economic Institutions and Systems? 5.6 Conclusion References B. SOURCES OF MORALITY IN ECONOMICS Chapter 6: Evolution and Moral Motivation in Economics 6.1 Introduction 6.2 What Is Morality? 6.3 Darwin and the Evolution of Morality 6.4 Contra Huxley and Dawkins: Morality Is More Than Skin Deep 6.5 How Morality Evolved:Genes and Culture 6.6 Conclusion: Economics without Economic Man References Chapter 7: Morality as a Complex Adaptive System: Rethinking Hayek’s Social Ethics 7.1 Philosophy and Economics: Interdisciplinary and Transdisciplinary Analyses 7.2 Rules 7.2.1 Mind and Rules 7.2.2 Rules and Action 7.3 Complexity 7.3.1 Bodo Rules 7.3.2 Large-Scale Society: The Diversity of Compliance Behavior 7.3.3 Large-Scale Society: The Size of the Rule System 7.3.4 Complexity and Emergence 7.4 Complex Systems: Macro Adaptation 7.4.1 Macro Selection 7.4.2 Evaluating the Upshot of Macro Selection 7.5 Complex Systems: Agent-Based Adaptation 7.5.1 When Macro Selection Pressures Ease 7.5.2 Agent-Based Adaptive Complex Systems 7.5.3 How Can “CAS2” Systems Remain Functional? 7.5.4 Self-organization and the Return of the Invisible Hand 7.6 Conclusion Acknowledgments References Chapter 8: On the Evolution of Ethics, Rationality, and Economic Behavior 8.1 Introduction 8.2 Rationality 8.3 The Evolution of Ethics from Cultural Practices 8.4 The Evolution of Economic Behavior 8.4.1 The Neoclassical Emphasis on Max-U and the Classical Emphasis on Conformity 8.4.2 A Bookshelf Metaphor 8.5 The Effect of Group Size on Economic Behavior 8.6 The Effect of Ethics on Economic Behavior 8.7 Individualism 8.8 Conclusion Acknowledgments References C. ETHICS IN SCHOOLS OF ECONOMICS Chapter 9: Human Ethicality: Evidence and Insights from Behavioral Economics 9.1 Introduction 9.2 Evidence on Lying 9.2.1 Experimental Methods 9.2.1.1 Lying Behavior in Sender-Receiver Games 9.2.1.2 Lying Behavior in the Die-in-the-Cup Paradigm 9.2.2 Evidence from the Field 9.2.3 External Validity of Lab Evidence 9.2.4 Incentives and Lying 9.3 Some Explanations for Moral Behavior 9.3.1 Maintenance of Self-Image 9.3.2 Cost of Lying 9.3.3 Moral Balancing 9.3.4 Self-Serving Justifications 9.3.5 Public Personas, Private Personas, and Morality 9.4 Exploring the Richness of Human Morality 9.4.1 Types of Liars 9.4.2 Lying in Gain and Loss Frames 9.4.3 Delegation and Punishment 9.4.4 History-Dependent Lying 9.4.5 Lying in Groups 9.4.6 Moral Suasion and Morality 9.4.7 Morality and Social Identity 9.4.8 Morality and Anonymity 9.4.9 The Slippery Slope of Dishonesty 9.4.10 Cross-Country Differences in Honesty 9.4.11 Gender Differences in Lying 9.5 Morality and Beliefs: Psychological Game Theory 9.6 Markets, Incentives, and Morality 9.7 Conclusions Acknowledgments References Chapter 10: Ethics and Economics: A Complex Systems Approach 10.1 Introduction: What Is Ethics and Economics as a Single Subject of Investigation? 10.2 A Complex Systems Approach to Ethics and Economics: Two Visions of the Subject 10.3 The Mainstream Economic Vision: Society Embedded in the Economy 10.3.1 The Mainstream’s Understanding of the Positive-Normative Distinction 10.3.2 Efficiency as a “Normative” Concept 10.3.3 Externalities 10.3.4 Cost-Benefit Analysis 10.4 The Social Economic Vision: The Economy Embedded in Society 10.4.1 Social Economics’ Understanding of the Positive-Normative Distinction 10.4.2 Capabilities, Moral Values, and Human Dignity 10.4.3 The Moral Limits of Markets View: Prohibitions-Based Social Policies 10.4.4 The Taming-the-Market View: Interventions-Based Social Policies 10.5 Future Prospects for Ethics and Economics as a Single Subject of Investigation Acknowledgments References Chapter 11: Economics and Ethics within the Austrian School of Economics 11.1 Introduction 11.2 Is Economics Value Free? 11.3 Ethical Concerns, Economic Analysis 11.4 Social Cooperation in the Austrian School 11.5 Conclusion References Chapter 12: Feminist Economics and Ethics 12.1 Feminist Ethics 12.1.1 Beyond Androcentric Ethics 12.1.2 Critical Reflection of Gender Norms 12.1.3 Care Justice for Whom? 12.2 Undoing Gender in Economics 12.2.1 Degendering Economic Terms 12.2.2 Normative Foundations of Feminist Economics 12.2.3 Overcoming Androcentric Economic Ethics 12.3 Feminist Economic Ethics: Method, Subject Matter, and Model of Action 12.3.1 Methodological Approach: Feminist Critical Reflection 12.3.1.1 Structural Level 12.3.1.2 Organizational Level 12.3.1.3 Individual Level 12.3.2 Reflected Subject Matter: Paid and Unpaid Work 12.3.2.1 Critical Household Economics 12.3.2.2 The Subsistence Approach 12.3.2.3 The Economic Theory of Paid and Unpaid Work 12.3.3 Sustaining Economic Activities: Caring Provisioning 12.4 Conclusion References Chapter 13: Economy and Culture: The Importance of Sense-Making 13.1 A Model of Five Spheres, Each with a Different Logic 13.2 The Notion of Culture 13.3 Economics as a Cultural Practice:Does It Impact the Economy? 13.4 The Methodological Issue 13.5 Cultural Practices Influencing or Causing Economic Practices 13.6 How Economic Practices May Affect Cultural Practices 13.7 Conclusion: It Is About Sense-Making References Part II: APPLICATIONS A. COMMERCE AND MARKETS Chapter 14: Humane Markets: The Classical Tradition of Political Economy 14.1 Introduction 14.2 Humane Political Economy 14.2.1 Hume’s Humane Political Economy 14.2.2 Smith’s Humane Political Economy 14.3 Criticisms of Humean and Smithian Political Economy 14.3.1 Dehumanizing Markets 14.3.2 The Vice of Markets 14.3.3 Inequality 14.4 Can Markets Be Humane? References Chapter 15: Capitalism and Democracy: Allies, Rivals, or Strangers? 15.1 Introduction 15.2 Tocqueville 15.3 Marx 15.4 Schumpeter 15.5 Hayek 15.6 Polanyi 15.7 The Postwar Literature 15.7.1 Varieties of Capitalism 15.7.2 The Crises of Democratic Capitalism 15.7.3 Rent-Seeking 15.8 Conclusion Acknowledgments References Chapter 16: The Moral Status of Profit 16.1 What Is Profit? 16.2 Why Profit-Seeking Is Collectively Self-Defeating 16.3 Market Adversarialism 16.4 Conclusion References Chapter 17: The Ethics of Money and Finance 17.1 Introduction 17.2 What Is Money and Finance? 17.2.1 What Is Money? 17.2.2 What is Finance? 17.3 Money as the Root of All Evil? 17.3.1 The Love of Money 17.3.2 Usury and Interest 17.3.3 Speculation and Gambling 17.4 Fairness in Financial Markets 17.4.1 Deception and Fraud 17.4.2 Avoiding Conflicts of Interest 17.4.3 Insider Trading 17.5 The Social Responsibility of Finance 17.5.1 Systemic Risk and Financial Crises 17.5.2 Microfinance 17.5.3 Socially Responsible Investment 17.6 Concluding Remarks Acknowledgments References Chapter 18: Ethics and, in, and for Labor Markets 18.1 Introduction 18.2 Labor Markets, Legitimate Wages, and Involuntary Unemployment 18.3 Labor Markets and the Rise of the Gig Economy 18.4 Labor Markets in a Just Society 18.5 Conclusion References B. WELFARE, RISK, AND POLICY Chapter 19: Cost-Benefit Analysis and Social Welfare Functions 19.1 Well-Being, Preferences, and Utility Functions 19.2 CBA 19.3 SWFs 19.4 Defenses of CBA 19.4.1 Kaldor-Hicks Efficiency and the Impossibility of Interpersonal Comparisons 19.4.2 Everyone Benefits from CBA in the Long Run 19.4.3 CBA Is a Rough Proxy for Overall Well-Being 19.4.4 CBA as an SWF 19.4.5 The Tax System 19.5 What Type of SWF? 19.6 Conclusion References Chapter 20: The Normative Economics of Social Risk 20.1 Introduction 20.2 Harsanyi’s Theorem 20.3 Ex Ante Egalitarianism 20.4 Ex Post Egalitarianism 20.5 Catastrophe Avoidance Versus Equity 20.6 The Separability Conundrum 20.7 Ambiguity Aversion 20.8 Veil-of-Ignorance Arguments 20.9 Conclusion Acknowledgments References Chapter 21: The Ethics of Making Risky Decisions for Others 21.1 Introduction 21.2 Four Dilemmas 21.2.1 Restrictive Intervention 21.2.2 Diversification 21.2.3 Unwelcome Risk Reductions 21.2.4 Not on My Watch 21.3 Distributional Sensitivities 21.3.1 Four Distributional Sensitivities 21.3.2 Modeling Distributional Sensitivities 21.3.2.1 The Inter-Personal Prospect Distribution 21.3.2.2 The Inter-State Distribution 21.3.2.3 The Intra-State Distribution 21.3.2.4 The Intra-Personal Prospect Distribution 21.4 Revisiting the Dilemmas 21.4.1 Sensitivity to the Inter-Personal Prospect Distribution and Restrictive Intervention 21.4.2 Sensitivity to the Inter-State Distribution and Diversification 21.4.3 Sensitivity to the Intra-State Distribution and Unwelcome Risk Reductions 21.4.4 Sensitivity to the Intra-Personal Prospect Distribution and Not on My Watch 21.4.5 Summing Up 21.5 Saving Few at Greater Risk to Many 21.5.1 Cases 21.5.2 Modeling Saving Few at Greater Independent Risk to Many 21.5.3 Modeling Saving Few at Greater Correlated Risk to Many 21.6 Critics 21.6.1 Against Inter-Personal Prospect Distribution Sensitivity 21.6.2 Against Inter-State Distribution Sensitivity 21.6.3 Against Intra-State Distribution Sensitivity 21.6.4 Against the Intra-Personal Prospect Distribution 21.7 Discussion 21.8 Conclusion Acknowledgments References Chapter 22: The Tragedy of Economics: On the Nature of Economic Harm and the Responsibilities of Economists 22.1 Introduction 22.2 The Sources of Econogenic Harm 22.3 Economic Harm: The Standard Approach 22.4 Kaldor-Hicks Efficiency: Normative Deficiencies 22.4.1 Compensable Versus Noncompensable Harm 22.4.2 The Complex Nature of (Economic) Harm 22.5 A Harm-Centric Approach to Economic Assessment 22.5.1 Nature of Prevalent, Prevented, and Covered Harms 22.5.2 Productivity of Harms 22.5.3 Distribution of Harms 22.5.4 Mechanisms of Harm Generation and Distribution 22.5.5 Consent versus Coercion 22.6 Conclusion Acknowledgments References C. ETHICS IN APPLIED ECONOMICS Chapter 23: Economics, Ethics, and Health Insurance 23.1 Efficiency in Health Care 23.2 Is It Cost-Effective to Rely on the Market? 23.3 Ethical Limits on Efficiency: Fairness, Solidarity, and Compassion 23.4 Freedom and Choice in Health Care 23.5 Fixing Health Care and Health Insurance Markets 23.6 Conclusion Acknowledgments References Chapter 24: Deontological Morality and Economic Analysis of Law 24.1 Introduction 24.2 Normative Economic Analysis of Law 24.3 Deontological Constraints and Options 24.3.1 General 24.3.2 Doing and Allowing; Intending and Foreseeing 24.3.3 Absolutist and Moderate Deontology 24.3.4 Morally Irrelevant Costs and Benefits 24.3.5 Criticism of Deontology 24.3.6 Moderate Deontology and the Law 24.4 Indirect Ways of Addressing Deontological Concerns 24.4.1 General 24.4.2 Moral Preferences 24.5 Integrating Threshold Constraints and Options with Economic Analysis of Law 24.6 Conclusion Acknowledgments References Chapter 25: The Ethics and Economics of Ecological Justice 25.1 Introduction 25.2 Toward Conceiving of Justice as Realistically Ecological 25.3 Before Justice 25.3.1 Neanderthals 25.3.2 Humans 25.4 Before Fairness, There Must Be Traffic Management 25.5 Conflict as a Foundation of Community 25.6 Varieties of Environmental Conflict 25.7 Moral Ideals and Political Compromise 25.8 Conclusion: Toward Real World Ethics Acknowledgments References Chapter 26: Civil Rights, Employment, and Race 26.1 Introduction 26.2 What Is the Purpose of Civil Rights Laws? 26.2.1 Justice and Rights 26.2.2 How Does Employment Discrimination Violate Someone’s Rights? 26.2.3 When Are Laws Needed? 26.2.4 What Activities Should Civil Rights Law Cover? 26.3 What Do Economists Know about Race in the Labor Market? 26.3.1 Labor Markets in General 26.3.2 Economists’ Questions and Answers about Labor Markets 26.3.2.1 Disparate Treatment Results 26.3.2.2 Disparate Impact Results 26.3.2.3 What Do Civil Rights Laws Do? 26.4 Policies for the Future 26.5 Conclusion Acknowledgments References Part III: CONCLUSION Chapter 27: Lessons from Economics 27.1 Introduction 27.2 Do Not Use “Utility” to Denote a Person’s Good 27.3 The Definition of Prioritarianism 27.4 A Bad Argument for Prioritarianism 27.5 A Good Argument for Prioritarianism 27.6 The Dangers of Ignoring Economic Theory 27.7 The Uses of Mathematics 27.8 Conclusion Acknowledgments References Index Presentación del editor: "Economics and ethics are both valuable tools for analyzing the behavior and actions of human beings and institutions. Adam Smith, the father of modern economics, considered them two sides of the same coin, but since economics was formalized and mathematicised in the late 1800s and early 1900s, the fields have largely followed separate paths. The Oxford Handbook of Ethics and Economics provides a timely and thorough survey of the various ways ethics can, does, and should inform economic theory and practice. The first part of the book, Foundations, explores how the most prominent schools of moral philosophy relate to economics; asks how morals relevant to economic behavior may have evolved; and explains how various approaches to economics incorporate ethics into their work. The second part, Applications, looks at the ethics of commerce, finance, and markets; uncovers the moral dilemmas involved with making decisions regarding social welfare, risk, and harm to others; and explores how ethics is relevant to major topics within economics, such as health care and the environment. With esteemed contributors from economics and philosophy, The Oxford Handbook of Ethics and Economics is a resource for scholars in both disciplines and those in related fields. It highlights the close relationship between ethics and economics in the past while and lays a foundation for further integration going forward." The Oxford Handbook of Ethics and Economics provides a timely and thorough survey of the various ways ethics can, does, and should inform economic theory and practice. The first part of the book, Foundations, explores how the most prominent schools of moral philosophy relate to economics; asks how morals relevant to economic behavior may have evolved; and explains how various approaches to economics incorporate ethics into their work. The second part, Applications, looks at the ethics of commerce, finance, and markets; uncovers the moral dilemmas involved with making decisions regarding social welfare, risk, and harm to others; and explores how ethics is relevant to major topics within economics, such as health care and the environment. A concluding chapter turns the table, recommending some lessons that ethics can learn from economics. With esteemed contributors from economics and philosophy, The Oxford Handbook of Ethics and Economics is designed to be a resource for scholars in both disciplines (and related fields such as political science, sociology, and psychology) as well as “consumers” of economics, such as policymakers, journalists, and laypersons. It highlights the close relationship between ethics and economics in the past while also laying a foundation for further integration going forward.