Philosophy of Economics

This information is for the 2022/23 session.

Teacher responsible

Dr Johanna Thoma


This course is compulsory on the BSc in Philosophy and Economics. This course is available on the BSc in Econometrics and Mathematical Economics, BSc in Economics, BSc in Philosophy, Logic and Scientific Method, BSc in Philosophy, Politics and Economics and BSc in Politics and Philosophy. This course is available as an outside option to students on other programmes where regulations permit and to General Course students.


Students must have completed a university-level introductory course in economics, such as EC1A3 andd EC1AB.

Although it is a third-year course, second-year students can take it with permission.

Course content

This course provides a philosophical discussion of (1) the methods and (2) the normative commitments of contemporary economics.

(1) Here the course will focus on economic methodology and the foundations of utility theory, with an eye to important current debates in economics. We will discuss questions such as: What is utility, and how do economists measure it? Does evidence of widespread `irrationality’ from behavioural economics undermine standard microeconomic theory? Can idealised models teach us anything about real-world phenomena? If yes, how? How should we measure important economic variables, such as inflation? How do we best find out what interventions work in development? Does macroeconomics need microfoundations? Is the economics profession to blame for its failure to predict the financial crisis?

(2) The second area of focus is on welfare economics, and the ethical assumptions and implications of economics. We will cover questions such as: Is getting what you want always good for you? Can you be harmed by something if you never know about it? Does it make sense to say that eating pizza gives me more happiness than going to the movies gives you? Is it possible to combine the preferences of individuals into an overall 'social' preference? Does it matter if the well-being of some people is less than that of others? When and why are markets desirable? Is paternalism always bad, and does welfare economics really avoid it? How should we resolve collective action problems? What is a fair way to distribute the tax burden?


15 hours of lectures and 10 hours of classes in the MT. 15 hours of lectures and 10 hours of classes in the LT.

This course is delivered through a combination of seminars and lectures totalling a minimum of 50 hours across Michaelmas Term and Lent Term. This course includes a reading week in Week 6 of both Michaelmas Term and Lent Term.

Formative coursework

Students will be expected to produce 2 essays in the MT and LT.

Students will be expected to produce two formative essays of 1,500 words, one each on the MT and LT material respectively. Note that both of these must be submitted since a reworked version is an essential part of the summative work for the course. 

Indicative reading

D. Hausman, The Philosophy of Economics: An Anthology; J. L. Bermudez, Decision Theory and Rationality; J. Cohen and W. Easterly, What Works in Development: Thinking Big and Thinking Small; D. Hausman and M. McPherson, Economic Analysis, Moral Philosophy, and Public Policy; M. D. Adler, Measuring Social Welfare: An Introduction; D. Satz, Why Some Things Should Not Be for Sale.


Essay (45%, 2500 words) in the LT.
Essay (45%, 2500 words) in the ST.
Class participation (10%).

Summative Essay 1 (2,000 words, +500 words reflective commentary, 45%, due in LT) is a rewritten version of the formative essay on the MT material.

Summative Essay 1 (2,000 words, +500 words reflective commentary, 45%, due in ST) is a rewritten version of the formative essay on the LT material.

Class participation counts for 10% of the course grade. 

Student performance results

(2019/20 - 2021/22 combined)

Classification % of students
First 34.8
2:1 53.6
2:2 11
Third 0
Fail 0.6

Key facts

Department: Philosophy, Logic and Scientific Method

Total students 2021/22: 83

Average class size 2021/22: 12

Capped 2021/22: No

Lecture capture used 2021/22: Yes (MT & LT)

Value: One Unit

Guidelines for interpreting course guide information

Course selection videos

Some departments have produced short videos to introduce their courses. Please refer to the course selection videos index page for further information.

Personal development skills

  • Self-management
  • Problem solving
  • Communication
  • Specialist skills