Human Flourishing and the Self-Limiting Assumptions of Modern Finance

Abstract

Current models in finance make strong, self-limiting assumptions about the nature of human utility, human relationships, human flourishing, and human growth. These assumptions facilitate tractable solutions to financial problems but ignore subjective determinants of human well-being and value creation within the firm. The philosophical and theological traditions of Catholic teaching, as well as evidence on human flourishing from model social science, call us beyond these models. This paper focuses on three specific areas where a “disconnect” exists between Catholic teaching and current finance models, highlights the relevance of Catholic teaching, and sketches a framework for more fully integrating human flourishing into finance models.