Economic Analysis for
Political Philosophers
UCL Department of Philosophy
Location: Seminar Room, Department of Philosophy, UCL,
Time: Mondays (from October 16, 2006) from 1:30 to
Convenors: Shepley Orr and Jo Wolff
The aim of this seminar is to introduce students of political philosophy
to areas where economic analysis and theories of justice come into contact, and
to see how political philosophers might benefit from a better understanding of
economic theory in those areas. The
seminar is structured on reading a doctrine in economics, and a related
(usually) shorter reading in political philosophy.
The main goal of the seminar is to stimulate discussion, and to
understand some basic principles of economics which relate to political
philosophy. We do not discuss
philosophical issues in decision or social choice theory, as they have less
direct contact with central issues of theories of justice in “the real
world”. Most of the economic reading is
from economic textbooks, with the exception of one short review in law and
economics and a short philosophical paper by an economist. These economic readings are relatively
recent, as we want to convey a sense of current doctrines in economics. No prior knowledge of economics or
mathematics is assumed, although there will be minimal algebraic and
diagrammatic exposition.
The seminar begins with principles of exchange and equilibrium, and the
normative significance of the Pareto principle.
We then turn to efficiency justifications for property rights, and the
normative status of Coase’s theorem.
Week four will concern market failure, public goods, and the normative
status of the state in relation to the market.
Week five concerns cost-benefit analysis and whether or how there is a
conflict between allocative efficiency and distributive justice. For the last two weeks we focus more on
political philosophy and hence have a longer philosophy reading than economics
reading. In week six we address ideal
theory and feasibility in political philosophy, and the similar problem of the
theory of the second best in welfare economics.
In week seven we look at the role of envy tests in Dworkin’s auction mechanism,
and at the use of envy tests in thinking about issues of economic equality
generally.
Week 1: Introduction
Date: Mon.,
No reading, general discussion.
Week 2: Exchange and
Equilibrium
Date: Mon,
*Economics
Philosophy
Week 3: Externalities and
Property Rights
Date: Mon, 30-10-06
*Economics Reading: Frank, R.H. (1997).
“Externalities, Property Rights, and the Coase Theorem” (Ch. 17: pp. 582-612)
in Microeconomics and Behaviour, 3rd
ed. (McGraw-Hill).
Philosophy Reading: Schmidtz, D.
(1994). “The Institution of Property”, Social Philosophy and Policy, 11(2): 42-62. (Or in Paul, Miller and Paul (eds.), Property Rights).
Week 4: Market Failure and
Public Goods
Date: Mon,
*Economics Reading: Barr, N.
(2004). “Economic Theory I: State
Intervention” and Appendix (Ch. 4: pp. 64-101), in Economics of the Welfare State, 4th ed. (OUP).
Philosophy Reading: Klosko, G. (2004).
Excerpts from “The Principle of Fairness” (Ch. 2: pp. 39-48), and from
“Discretionary Public Goods” (Ch. 4: pp. 85-95), in The Principle of Fairness and Political Obligation.(Rowan and
Littlefield).
Week 5: Cost-Benefit Analysis
and Economic Policy
Date: Mon,
*Economics Reading: Stiglitz, J.
(2000). “Cost-Benefit Analysis” (ch. 11: pp. 271-93), in Economics of the Public Sector, 3rd ed. (Norton).
Philosophy Reading: Murphy, L. and T.
Nagel. (2001). Sections 1 and 2 (pp. 53-63) of “Taxes, Redistribution and
Public Provision”, Philosophy and Public Affairs, 30(1): 53-71. (Or see pp. 76-92 in The Myth of Ownership: Taxes and Justice (OUP)).
Week 6: Non-Ideal Theory and
the General Theory of the Second Best
Date: Mon, 4-12-06
Economics Reading: Markovitz, R.S.
(1998). “Second-Best Theory and Law and Economics: An Introduction”, Chicago-Kent Law Review, 73(1): 3-11.
*Philosophy Reading: Brighouse, H.
(2005). “Ideal Theory and Institutional Feasibility”
(Ch. 2: pp. 11-29) of Justice.
(Polity).
Week 7: Interpersonal
Comparisons and Envy Tests
Date: Mon, 11-12-06
Economics Reading: Sugden, R. (1985)
“Is Fairness Good?: A Critique of Varian’s Theory of Fairness”, Nous, 18(3): 505-11.
*Philosophy Reading: Dworkin,
R. (1981). Excerpts from “Equality of Resources” (Ch. 2: 65-92) and “The Place
of Liberty” (Ch. 4: 139-47), in Sovereign
Virtue (Harvard) .**