People seem to be motivated by moral ideas and in this paper I discuss how we should take this into account in positive and normative economics. I review alternative ways of modelling moral motivation and reasoning in positive economics and discuss how the presence of moral motivation may challenge the standard framework of welfare economics. I also discuss the need for invoking non-welfaristic principles in normative economics and whether these principles can be reconciled with the Pareto principle.
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Find related papers by JEL classification: D10 - Microeconomics - - Household Behavior - - - General D60 - Microeconomics - - Welfare Economics - - - General D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations H2 - Public Economics - - Taxation, Subsidies, and Revenue H4 - Public Economics - - Publicly Provided Goods
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