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 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.

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 two parts.

Part A: 'Markets and Morals' covers key historical and contemporary thinkers on the moral advantages and disadvantages of market institutions. Among others, we will cover Bernard Mandeville's thesis that 'Private Vices' lead to 'Publick Benefits'; David Hume's account of how self-interest and sympathy combine to generate our moral code; Adam Smith's analysis of the working of the 'Invisible Hand' and of the vices and virtues of commercial society, and Marx's idea that markets lead to the improper 'commodification' of non-market goods. 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 B: '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?'

10 hours of lectures, 10 hours of classes and 5 hours of help sessions in the MT. 10 hours of lectures, 10 hours of classes and 5 hours of help sessions in the LT.

Each lecture will be followed by a non-mandatory 30-minute Q&A 'help session' for interested students. This 'help session' will not cover new material. Instead, it will allow some discussion with the lecturer of the material just covered in the lecture.  Students who are unable to regularly attend this session may still take the course.

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”; B. Mandeville, "The Fable of the Bees" (excerpts); D. Hume, "A Treatise on Human Nature" (excerpts); L. Heilbroner, "The Essential Adam Smith (Reader)"; A.O. Hirschman, "Rival Interpretations of Market Society: Civilising, Destructive or Feeble?"; K. Marx, "Capital" (excerpts); M. Friedman, “Capitalism and Freedom” (excerpts); D. Satz, "Why Some Things Should Not Be for Sale: The Moral Limits of Markets"; J.S. Mill, "On the Definition and Method of Political Economy"; M. Friedman, "The Methodology of Positive Economics". Additional readings will be made available on Moodle.

Exam (67%, duration: 2 hours) in the main exam period.
Essay (33%, 2000 words) in the ST.