DECO 27A43 - Philosophy of Economics, Theory, Methodology and Ethics

Whether we like it or not, economics is part of our lives. As citizens, consumers, workers, or family members, we have either to make economic choices ourselves or to deal with the impact of others' economic decisions. Arguably, life in modern societies has an important economic dimension. This gives economics and economists an important social and political role. From climate change to financial crisis, from redistribution to regulation of labor markets and competition, all major policies and political decisions depend on the kind of knowledge produced by economists. Understanding how this knowledge is produced, with which methods, and under which assumptions, is therefore of tremendous importance. It is also essential to determine how this knowledge interacts with other non-economic considerations and, ultimately, how it is used in society. Answering these questions is the main task of the philosophy of economics. Broadly speaking, the philosophy of economics is the encounter of two historically related disciplines - economics and philosophy. Philosophers of economics use philosophy to reflect on how economists produce economic knowledge. They also use economic tools and theories to tackle philosophical problems, such as determining what counts as a “just” society. In this class, we will combine the resources of economics and philosophy to treat two different sets of issues about economic knowledge. First, we will explore how economists explain the world. We will discuss the main tools and principles of economic analysis that are used to explain major economic (e.g., growth, market competition, poverty) and non-economic (e.g., segregation, harassment, military defeats) phenomena. We will explain why economists typically assume that individuals are rational, why they largely use mathematical models, and what role experiments can play in the economist's toolbox. Second, we will study how economists evaluate the world. Of all the social sciences, economics is the one that has the most influence on public policies. Such influence presupposes that economists are able to assess competing policies and more generally to evaluate behavior and institutions. We will examine the criteria that economists use to produce their evaluations and how the traditional economic consideration for efficiency trades with others, such as fairness or respect of rights. We will also discuss whether it is possible and desirable to extend market relations to domains that have been until now outside their scope (e.g., human organs, citizenship for immigrants). By asking this question, we will have to deal with the more fundamental question about the morality of market relationships. At the end of the semester, students will have acquired some basic economic and philosophical knowledge They will also be able to reflect critically on the role of economists in our society and the place that economics and the economy have in our lives.

Cyril HEDOIN

Séminaire

English

This course is not an introduction to economics. However, it does not require any particular preexisting economic knowledge. Economic concepts, tools, and theories relevant to our purpose will be introduced along with the rest of the material. There is no requirement regarding philosophical knowledge either. Do note, however, that both economics and philosophy are intellectually demanding disciplines. It is preferable to have a taste for abstract reasoning as well as an ability to manipulate concepts and theories. There will be no advanced mathematics or logic, though. You will find the class interesting if issues such as “What is the role of economists in society?” and “Is a market economy fair?” trigger your interest.

Spring 2024-2025

Your grade will be based on three evaluations. A midterm exam that counts for 30%, a final term exam that counts for 30%, and a discussion paper that counts for 30%. More details will be provided during the first week of the class. The discussion paper is a 2000-to-4000-word document that discusses a topic of your choice among those addressed during the semester, based on the course materials and the readings. You are expected to do the mandatory readings that are assigned to you before coming to class. Each week, the class will start with a discussion based on them. Participation will count for 10% of your grade. Mandatory readings will be put at your disposal. The suggested readings are there to help you deep your understanding/insight if you wish. Part of the material presented in class is based on them. The due date for the discussion essay will be communicated in class at the beginning of the semester. No delay will be tolerated. If you are not able to send your work in its final state, send what you have been able to do, even if incomplete. You are expected to be in class on time. Some tolerance will be applied but in the case of repeated or unreasonable delays, you will not be permitted to enter the classroom.