Philosophy of Economics
A.Y. 2025/2026
Learning objectives
The course aims at familiarizing students with the main philosophical debates concerning the status of economics as a science, as well as its moral and political dimension.
Expected learning outcomes
Knowledge and understanding
At the end of the course the students
- will learn to analyse and evaluate critically the main epistemological and normative critiques of mainstream (neoclassical) economics, as well as the main arguments in its favour;
- will understand arguments concerning the use of idealized models and the problems faced by social scientists when they try to forecast economic events;
- will learn the difference between nomological and causal explanations, and the pros and cons of theory-testing in the laboratory and in the field.
- will understand the main arguments in favour of market institutions, as well as the critiques that highlight their limits;
- will know how different conceptions of welfare, equality and justice play a role in the evaluation of economic policies.
Ability to apply knowledge and understanding
At the end of the course the students
- will be able to analyse and critically assess the main arguments brought in favour and against different philosophical positions concerning the methodology of economics and the normative evaluation of economic policies;
- will be able to identify the ways in which these debates may be resolved, and how their solutions may contribute to scientific progress and understanding;
- will be able to present the main arguments independently, satisfying the main requirements of scholarly writing.
At the end of the course the students
- will learn to analyse and evaluate critically the main epistemological and normative critiques of mainstream (neoclassical) economics, as well as the main arguments in its favour;
- will understand arguments concerning the use of idealized models and the problems faced by social scientists when they try to forecast economic events;
- will learn the difference between nomological and causal explanations, and the pros and cons of theory-testing in the laboratory and in the field.
- will understand the main arguments in favour of market institutions, as well as the critiques that highlight their limits;
- will know how different conceptions of welfare, equality and justice play a role in the evaluation of economic policies.
Ability to apply knowledge and understanding
At the end of the course the students
- will be able to analyse and critically assess the main arguments brought in favour and against different philosophical positions concerning the methodology of economics and the normative evaluation of economic policies;
- will be able to identify the ways in which these debates may be resolved, and how their solutions may contribute to scientific progress and understanding;
- will be able to present the main arguments independently, satisfying the main requirements of scholarly writing.
Lesson period: Second semester
Assessment methods: Esame
Assessment result: voto verbalizzato in trentesimi
Single course
This course can be attended as a single course.
Course syllabus and organization
Single session
Responsible
Lesson period
Second semester
Course syllabus
1. Economic explanations: supply and demand
2. Market Failures
3. Welfare economics, preference satisfaction and cost-benefit analysis
4. Preference aggregation
5. Distributive justice
6. Freedom and rights
7. Opportunity and capabilities
8. Equality and democracy
9. The moral limits of markets
2. Market Failures
3. Welfare economics, preference satisfaction and cost-benefit analysis
4. Preference aggregation
5. Distributive justice
6. Freedom and rights
7. Opportunity and capabilities
8. Equality and democracy
9. The moral limits of markets
Prerequisites for admission
None.
Teaching methods
Lectures, group work and seminars.
Teaching Resources
This is an indicative list of readings - the final syllabus will be published on Ariel at the end of the lectures.
- Reiss, J. (2013) Philosophy of Economics: A Contemporary Introduction. Routledge (selected chapters).
- Hausman, D., McPherson, M. & Satz, D. (2017) Economic Analysis, Moral Philosophy, and Public Policy. Cambridge University Press (selected chapters).
- Friedman, M. & Friedman, R. (1980) "The Power of the Market", in Free to Choose. Harcourt Brace. [Ariel
- Sen, A. (1999) On Ethics and Economics. Blackwell, Chapter 2 ("Economic Judgments and Moral Philosophy".)
- Hausman, D. & McPherson, M. (2009) "Preference Satisfaction and Welfare Economics", Economics and Philosophy 25: 1-25
- Sen, A. (1970) "The Impossibility of a Paretian Liberal", Journal of Political Economy, 78, 152-157.
- Rawls, J. "Distributive Justice", in Ryan (ed.) Justice, Oxford UP 1993; also in Stewarts (ed.) Readings in Political Philosophy, and in Laslett and Runciman (eds.), Philosophy, Politics and Society.
- Nozick, R. (1974) "Distributive Justice", Philosophy & Public Affairs 3: 45-126. Although the whole paper is relevant, the first part (until p. 78) illustrates Nozick's theory and is particularly important.
- Sen, A. (1988) "Freedom of Choice: Concept and Content", European Economic Review 32: 269-294.
- Crisp, R. (2003) "Equality, Priority, and Compassion". Ethics 113: 745-763.
- Miller, D. (1997) "Equality and Justice", Ratio 10: 222-237
- Anderson, E. (1990) "The Ethical Limitations of the Market", Economics and Philosophy 6: 179-205.
- Brennan, J. and Jaworski, P. (2015) "In Defense of Commodification." Moral Philosophy and Politics 2: 357-377.
- Friedman, M. (1953) "The Methodology of Positive Economics", in Essays in Positive Economics. University of Chicago Press.
- Gibbard, A., & Varian, H. R. (1978) "Economic Models", Journal of Philosophy, 75: 664-677.
- Mäki, U. (2005) "Models are Experiments, Experiments are Models", Journal of Economic Methodology, 12: 303-315.
- Hoover, K. (2001) The Methodology of Empirical Macroeconomics, Chapter 4 ("Causality in Economics"), Cambridge University Press, pp. 91-111.
- Lawson, T. (2012) "Mathematical Modelling and Ideology in the Economics Academy: Competing Explanations of the Failings of the Modern Discipline?", Economic Thought, 1(1).
- Reiss, J. (2013) Philosophy of Economics: A Contemporary Introduction. Routledge (selected chapters).
- Hausman, D., McPherson, M. & Satz, D. (2017) Economic Analysis, Moral Philosophy, and Public Policy. Cambridge University Press (selected chapters).
- Friedman, M. & Friedman, R. (1980) "The Power of the Market", in Free to Choose. Harcourt Brace. [Ariel
- Sen, A. (1999) On Ethics and Economics. Blackwell, Chapter 2 ("Economic Judgments and Moral Philosophy".)
- Hausman, D. & McPherson, M. (2009) "Preference Satisfaction and Welfare Economics", Economics and Philosophy 25: 1-25
- Sen, A. (1970) "The Impossibility of a Paretian Liberal", Journal of Political Economy, 78, 152-157.
- Rawls, J. "Distributive Justice", in Ryan (ed.) Justice, Oxford UP 1993; also in Stewarts (ed.) Readings in Political Philosophy, and in Laslett and Runciman (eds.), Philosophy, Politics and Society.
- Nozick, R. (1974) "Distributive Justice", Philosophy & Public Affairs 3: 45-126. Although the whole paper is relevant, the first part (until p. 78) illustrates Nozick's theory and is particularly important.
- Sen, A. (1988) "Freedom of Choice: Concept and Content", European Economic Review 32: 269-294.
- Crisp, R. (2003) "Equality, Priority, and Compassion". Ethics 113: 745-763.
- Miller, D. (1997) "Equality and Justice", Ratio 10: 222-237
- Anderson, E. (1990) "The Ethical Limitations of the Market", Economics and Philosophy 6: 179-205.
- Brennan, J. and Jaworski, P. (2015) "In Defense of Commodification." Moral Philosophy and Politics 2: 357-377.
- Friedman, M. (1953) "The Methodology of Positive Economics", in Essays in Positive Economics. University of Chicago Press.
- Gibbard, A., & Varian, H. R. (1978) "Economic Models", Journal of Philosophy, 75: 664-677.
- Mäki, U. (2005) "Models are Experiments, Experiments are Models", Journal of Economic Methodology, 12: 303-315.
- Hoover, K. (2001) The Methodology of Empirical Macroeconomics, Chapter 4 ("Causality in Economics"), Cambridge University Press, pp. 91-111.
- Lawson, T. (2012) "Mathematical Modelling and Ideology in the Economics Academy: Competing Explanations of the Failings of the Modern Discipline?", Economic Thought, 1(1).
Assessment methods and Criteria
Written exam in class. Presentations.
Professor(s)
Reception:
Tuesday 9.30-12.30, by appointment only
Department of Philosophy, via Festa del Perdono 7, Cortile Ghiacciaia, top floor