PH311      One Unit
Philosophy of Economics

This information is for the 2025/26 session.

Course Convenor

Availability

Requisites

Additional requisites:

Students must have completed a university-level introductory course in economics, such as the combination of EC1A3 and EC1B3.

Although it is a third-year course, second-year students meeting the prerequisites are welcome to take it.

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 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 various normative issues lying in the intersection of philosophy and economics. It will critically examine methods used by economists for policy evaluation, such as social welfare functions and cost-benefit analysis. And it will consider ethical questions related to economic institutions, such as taxation, property, and use of markets. Questions to be addressed may include the following. What is "well-being" and to what extent can it be measured and compared between individuals? Are inequalities in the distribution of well-being necessarily undesirable or unjust? Can it ever be preferable to prevent a very large number of headaches rather than saving a single life? Should the interests of future generations be given equal weight with those of the current generation? What sorts of goods and services are appropriately exchanged in markets?

15 hours of lectures and 10 hours of classes in the Winter Term.
15 hours of lectures and 10 hours of classes in the Autumn Term.

This course has a reading week in Week 6 of Autumn and Winter Term.

This course is delivered through a combination of seminars and lectures totalling a minimum of 50 hours across Autumn Term and Winter Term.

Students will be expected to produce 2 essays in the AT and WT.

Students will be expected to produce two formative essays of 1,200 words, one each on the AT and WT 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. 

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.

Course participation (15%)

Essay (35%, 1500 words)

Essay (35%, 1500 words)

Multiple choice quiz (15%)

Summative Essay 1 (1,500 words, + 300 words reflective commentary, 35%, due in WT) is a rewritten version of the formative essay on the AT material. Summative Essay 2 (1,500 words, + 300 words reflective commentary, 35%, due in ST) is a rewritten version of the formative essay on the WT material. Weekly multiple-choice quizzes testing reading comprehension count for 15% of the course grade. Class participation counts for 15% of the course grade.