Dr Joseph Mazor CONNAUGHT 3.01 and Dr Alexander Voorhoeve LAK 401

This course is compulsory on the BSc in Philosophy and Economics. This course is available on the BSc in Business Mathematics and Statistics, BSc in Econometrics and Mathematical Economics, BSc in Economics, BSc in Philosophy, Logic and Scientific Method, BSc in Philosophy, Politics and Economics, BSc in Politics and Philosophy and BSc in Statistics with Finance. 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 Economics A (EC100).

Intermediate microeconomics and/or public economics recommended but not required for the material in the Michaelmas Term of the course.

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

The first term, 'Welfare Economics', covers several topics in the analysis of public policy, including efficiency and its critics; optimal taxation and its critics; cost-benefit analysis; public goods; externalities; fair prices; paternalism and behavioural economics; and the ethics of the discount rate.

The second term falls into three parts.

Part A:'The Value of Economic Models' focuses on questions in the philosophy of science, including, 'Does it matter that economic models have false assumptions?'; and 'What makes for a good (or bad) model?'

Part B: 'Markets and Morals' covers key historical thinkers on the moral advantages and disadvantages of market institutions. We will also cover contemporary debates on the moral limits of markets, focusing especially on the question which goods ought (not) to be for sale.

Part C: 'New Interdisciplinary Research' discusses new research that draws on both disciplines.

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

Students will be expected to produce 2 essays in the MT and 1 essay and 2 presentations in the LT.

L. Robbins, "The Nature and Significance of Economic Science"; A. Sen, "Equality of What?"; D. Hausman and M. McPherson, "Economic Analysis, Moral Philosophy, and Public Policy"; John Broome, "Discounting the Future";  C. Sunstein and R. Thaler, “Preferences, Paternalism, and Liberty”; D. Hausman 'The Philosophy of Economics: An Anthology'; D. Hume, "A Treatise on Human Nature" (excerpts);  A.O. Hirschman, "Rival Interpretations of Market Society: Civilising, Destructive or Feeble?"; K. Marx, "Capital" (excerpts); D. Satz, "Why Some Things Should Not Be for Sale: The Moral Limits of Markets"; Additional readings will be made available on Moodle.

Exam (65%, duration: 2 hours) in the main exam period.
Essay (25%, 2000 words) in the ST.
Class participation (10%).