Chapter 17 - POSITIVE AND NORMATIVE ECONOMICS

Abstract

This chapter discusses positive and normative economics. From the survey of the philosophical literature, it has become apparent that normative statements, or expressions of value judgments, do not enjoy an unequivocal status in logic. They are dependent on which logician pronounces the verdict, empirical propositions, analytical propositions, or no propositions at all. The differences in the verdicts are not entirely because of the differences between logical schools but are also partly because of semantic differences, as the meaning of normative statement is far from unambiguous. That value judgments can be regarded as analytical propositions means that they can be derived by logical inference from stated assumptions. The logical positivist or radical empiricist will not recognize that there is a change of meaning involved. The positive in positive economics means nonnormative, nonevaluative. It may be in order to examine the many kinds of values and value references with which the economist may have to concern them. One must find out which ones, if any, are likely to lead him into making normative statements or expressing value judgments inadmissible in positive economics.