Normative empirical concepts – a practical guiding tool for economists

Abstract

ABSTRACT Economists use a variety of normative empirical concepts because the economy and morality are intertwined. Often, this normativity is intended and widely acknowledged, signaling the relevance and meaning of research. Sometimes, the objectivity of research and the findings obtained by using normative concepts is problematic. Written from the perspective of a practicing economist, the article offers a practical guiding tool to economists, suggesting how to be responsible in developing and using normative empirical concepts. It is based on valuable insights from the philosophy of science and codes of conduct. It illustrates the use of the guiding tool with the example of a normative empirical concept that is widely used in development economics: ‘ethnic fractionalization’. The conclusion is that applied economists should be more involved in being accountable for the normativity in our work and that we should ensure that, by using the tool, the normative concepts that we use are acceptable.