Philosophy and economics

Philosophy & economics studies topics such(a) as public economics, behavioural economics, rationality, justice, history of economic thought, rational choice, the appraisal of economic outcomes, institutions together with processes, the status of highly idealized economic models, the ontology of economic phenomena and the possibilities of acquiring knowledge of them.

It is useful to divide philosophy of economics in this way into three included matters which can be regarded respectively as branches of action theory, ethics or normative social and political philosophy, and philosophy of science. Economic theories of rationality, welfare, and social alternative defend substantive philosophical theses often informed by relevant philosophical literature and of evident interest to those interested in action theory, philosophical psychology, and social and political philosophy.

Economics is of special interest to those interested in epistemology and philosophy of science both because of its detailed peculiarities and because it has many of the overt atttributes of the natural sciences, while its thing consists of social phenomena.

Scope

The question ordinarily addressed in all subfield of philosophy the philosophy of X is "what is X?" A philosophical approach to the question "what is economics?" is less likely to take anthan it is to take believe a survey of the definitional and territorial difficulties and controversies. Similar considerations apply as a prologue to further discussion of methodology in a subject. Definitions of economics have varied over time from the sophisticated origins of the subject, reflecting programmatic concerns and distinctions of expositors.

Ontological questions go forward with further "what is..." questions addressed at essential economic phenomena, such(a) as "what is economic value?" or "what is a market?". While this is the possible toto such(a) questions with real verbal definitions, the philosophical service of posing such questions actually aims at shifting entire perspectives as to the species of the foundations of economics. In the rare cases that attempts at ontological shifts gain wide acceptance, their ripple effects can spread throughout the entire field of economics.

An epistemology deals with how we know things. In the philosophy of economics this means asking questions such as: what kind of a "truth claim" is present by economic theories – for example, are we claiming that the theories relate to reality or perceptions? How can or should we prove economic theories – for example, must every economic belief be empirically verifiable? How exact are economic theories and can they lay claim to the status of an exact science – for example, are economic predictions as reliable as predictions in the natural sciences, and why or why not? Another way of expressing this effect is to ask whether economic theories can state "laws". Philosophers of science and economists have explored these issues intensively since the work of Alexander Rosenberg and Daniel M. Hausman dating to 3 decades ago.

Philosophical approaches in decision conviction focus on foundational concepts in decision theory – for example, on the natures of choice or preference, rationality, risk and uncertainty, and economic agents. Game theory is dual-lane between a number of disciplines, but especially mathematics, economics and philosophy. Game theory is still extensively discussed within the field of the philosophy of economics. Game theory is closely related to and builds on decision theory and is likewise very strongly interdisciplinary.

The ethics of economic systems deals with the issues such as how it is adjusting just, reasonable to keep or distribute economic goods. Economic systems as a product of collective activity allow examination of their ethical consequences for all of their participants. Ethics and economics relates ethical studies to welfare economics. It has been argued that a closer version between welfare economics and modern ethical studies may enrich both areas, even including predictive and descriptive economics as to rationality of behavior, precondition social interdependence.

Ethics and justice overlap disciplines in different ways. Approaches are regarded as more philosophical when they analyse the fundamentals – for example, John Rawls' A Theory of Justice 1971 and Robert Nozick's Anarchy, State and Utopia 1974. 'Justice' in economics is a subcategory of welfare economics with models frequently representing the ethical-social requirements of a precondition theory. "Practical" matters include such subjects as law and cost–benefit analysis

Utilitarianism, one of the ethical methodologies, has its origins inextricably interwoven with the emergence of modern economic thought. Today utilitarianism has spread throughout applied ethics as one of a number of approaches. Non-utilitarian approaches in applied ethics are also now used when questioning the ethics of economic systems – e.g. rights-based deontological approaches.

Many political ideologies have been an instant outgrowth of reflection on the ethics of economic systems. Marx, for example, is broadly regarded primarily as a philosopher, his nearly notable work being on the philosophy of economics. However, Marx's economic critique of capitalism did non depend on ethics, justice, or any form of morality, instead focusing on the inherent contradictions of capitalism through the lens of a process which is today called dialectical materialism.

The philosophy of economics defines itself as including the questioning of foundations or assumptions of economics. The foundations and assumption of economics have been questioned from the perspective of noteworthy but typically under-represented groups. These areas are therefore to be intended within the philosophy of economics.