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Beyond welfare economics: some methodological issues

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  • Giuseppe Munda

Abstract

When one wishes to formulate, evaluate and implement public policies, the existence of a plurality of social actors, with interest in the policy being assessed, generates a conflictual situation. How such a conflict should be dealt with? This paper defends the thesis articulated in the following points: (1) Different metrics are linked to different objectives and values. To use only one measurement unit (on the grounds of the so-called commensurability principle) for incorporating a plurality of dimensions, objectives and values, implies reductionism necessarily. (2) Point (1) can be proven as a matter of formal logic by drawing on the work of Geach about moral philosophy. This theoretical demonstration is an original contribution of this article. Moreover, here the distinction between predicative and attributive adjectives is formalised and definitions are provided. Predicative adjectives are further distinguished into the new categories of absolute and relative ones. The new concepts of set commensurability and rod commensurability are introduced too. (3) Weak comparability of values, which is grounded on incommensurability, is proposed as the main methodological foundation of well-being evaluation. Incommensurability does not imply incomparability; on the contrary incommensurability is the only possible way to compare societal options under a plurality of policy objectives. Weak comparability can be implemented by using multicriteria evaluation, which is a formal framework for applied consequentialism under incommensurability.

Suggested Citation

  • Giuseppe Munda, 2016. "Beyond welfare economics: some methodological issues," Journal of Economic Methodology, Taylor & Francis Journals, vol. 23(2), pages 185-202, June.
  • Handle: RePEc:taf:jecmet:v:23:y:2016:i:2:p:185-202
    DOI: 10.1080/1350178X.2016.1157199
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    Cited by:

    1. Irz, Xavier & Jensen, Jørgen Dejgaard & Leroy, Pascal & Réquillart, Vincent & Soler, Louis-Georges, 2017. "A Cross-Country Comparison of the Sustainability Effects of Dietary Recommendations," 2017 International Congress, August 28-September 1, 2017, Parma, Italy 261114, European Association of Agricultural Economists.
    2. Cheng Li, 2019. "Morality and value neutrality in economics: a dualist view," The Journal of Philosophical Economics, Bucharest Academy of Economic Studies, The Journal of Philosophical Economics, vol. 12(2), pages 97-118, May.
    3. Vozna Liudmyla Yu., 2016. "The Notion of Entropy in an Economic Analysis: the Classical Examples and New Perspectives," Journal of Heterodox Economics, Sciendo, vol. 3(1), pages 1-16, June.
    4. Salvatore Greco & Alessio Ishizaka & Menelaos Tasiou & Gianpiero Torrisi, 2019. "On the Methodological Framework of Composite Indices: A Review of the Issues of Weighting, Aggregation, and Robustness," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 141(1), pages 61-94, January.
    5. Petar Stankov, 2017. "Economic Freedom and Welfare Before and After the Crisis," Springer Books, Springer, number 978-3-319-62497-6, June.
    6. Cheng LI, 2020. "The rationality principle as a universal grammar of economic explanations," The Journal of Philosophical Economics, Bucharest Academy of Economic Studies, The Journal of Philosophical Economics, vol. 13(2), pages 58-80, November.
    7. Jonas Van der Slycken & Brent Bleys, 2021. "Towards ISEW and GPI 2.0, part II: Is Europe faring well with growth? Evidence from a welfare comparison in the EU-15 from 1995 to 2018," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 21/1027, Ghent University, Faculty of Economics and Business Administration.
    8. Giuseppe Munda, 2022. "Qualitative reasoning or quantitative aggregation rules for impact assessment of policy options? A multiple criteria framework," Quality & Quantity: International Journal of Methodology, Springer, vol. 56(5), pages 3259-3277, October.

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