What is normative economics?

Normative economics is a type of economic vision that tries to give recommendations, make policies or actions based on personal (or subjective) opinions of what should be done.

El objetivo the economía normative is to identify desirable goals to apply positive economics knowledge to achieve them. Positive economics is one that explains economic phenomena objectively, that is, as it is.

Objective of normative economics

The information that normative economics tries to convey starts from a given situation and a given economic theory. Normative economics makes a judgment of said situation, offering data at the economist's own value to follow a certain course of action.

The economist is treated asnormative economist, which is one who makes judgments based on non-objective cause-effect relationships. However, this does not mean that the objective opinion of the theory is not taken into account, but that both subjective opinion and the theory (the objective part) will be included.

Normative economics and value judgments

As we have said, normative economics is based on a series of values ‚Äč‚Äčthat the economist himself considers appropriate to include.

Among these values, there are some that have a greater weight in the opinion of the economist than others. Politics, ethics or religion or beliefs do so much more than any other. However, there are those who believe that the currents of the most famous thinkers and economists are already on trial from the first moment

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