Normative statement

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In many disciplines, including economics and philosophy, a normative statement or prescriptive statement expresses a value judgment about the desirability of a situation. Whereas a descriptive statement (also known as a positive statement) is meant to describe the world as it is, a normative statement is meant to talk about the world as it should be. [1]

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For instance, "the world would be a better place if the moon were made of green cheese" is a normative statement because it expresses a judgment about what ought to be. Normative statements are characterised by the modal verbs "should", "would", "could" or "must". [2]

In economics, normative statements form the basis of normative economics. [2]

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Positive is a property of positivity and may refer to:

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<span class="mw-page-title-main">Is–ought problem</span> Philosophical problem articulated by David Hume

The is–ought problem, as articulated by the Scottish philosopher and historian David Hume, arises when one makes claims about what ought to be that are based solely on statements about what is. Hume found that there seems to be a significant difference between positive statements and prescriptive or normative statements, and that it is not obvious how one can coherently transition from descriptive statements to prescriptive ones. Hume's law or Hume's guillotine is the thesis that an ethical or judgmental conclusion cannot be inferred from purely descriptive factual statements.

Normative generally means relating to an evaluative standard. Normativity is the phenomenon in human societies of designating some actions or outcomes as good, desirable, or permissible, and others as bad, undesirable, or impermissible. A norm in this sense means a standard for evaluating or making judgments about behavior or outcomes. "Normative" is sometimes also used, somewhat confusingly, to mean relating to a descriptive standard: doing what is normally done or what most others are expected to do in practice. In this sense a norm is not evaluative, a basis for judging behavior or outcomes; it is simply a fact or observation about behavior or outcomes, without judgment. Many researchers in science, law, and philosophy try to restrict the use of the term "normative" to the evaluative sense and refer to the description of behavior and outcomes as positive, descriptive, predictive, or empirical.

Positive economics is the part of economics that deals with positive statements. Positive economics, was originated from positivism and got introduced to economics by John Stuart Mill in his book Auguste Comte and Positivism in 1860's, reflecting upon Comte's positivism. Then, it was developed by John Neville Keynes in the 1890's and it became popular economical thought by elaborations of Lionel Robbins in the 1930s. In essence, positive economics studies what is rather than what ought to be. While economics can be filled with subjective statements such as value and allocation, it is vital to distinguish that what be is not objectively permanent or desirable.

Normative economics is the part of economics that deals with normative statements. It focuses on the idea of fairness and what the outcome of the economy or goals of public policy ought to be.

Norms are concepts (sentences) of practical import, oriented to affecting an action, rather than conceptual abstractions that describe, explain, and express. Normative sentences imply "ought-to" types of statements and assertions, in distinction to sentences that provide "is" types of statements and assertions. Common normative sentences include commands, permissions, and prohibitions; common normative abstract concepts include sincerity, justification, and honesty. A popular account of norms describes them as reasons to take action, to believe, and to feel.

Naturalized epistemology is a collection of philosophic views about the theory of knowledge that emphasize the role of natural scientific methods. This shared emphasis on scientific methods of studying knowledge shifts the focus of epistemology away from many traditional philosophical questions, and towards the empirical processes of knowledge acquisition. There are noteworthy distinctions within naturalized epistemology. Replacement naturalism maintains that we should abandon traditional epistemology and replace it with the methodologies of the natural sciences. The general thesis of cooperative naturalism is that traditional epistemology can benefit in its inquiry by using the knowledge we have gained from cognitive sciences. Substantive naturalism focuses on an asserted equality of facts of knowledge and natural facts.

The fact–value distinction is a fundamental epistemological distinction described between:

  1. Statements of fact, based upon reason and physical observation, and which are examined via the empirical method.
  2. Statements of value, which encompass ethics and aesthetics, and are studied via axiology.

In the social sciences and philosophy, a positive or descriptive statement concerns what "is", "was", or "will be", excluding statements of what is, was, or will be moral. Positive statements are thus the opposite of normative statements. Positive statements are based on empirical evidence. For example, "an increase in taxation will result in less consumption" and "a fall in supply of petrol will lead to an increase in its price". However, positive statements can be factually incorrect: "The moon is made of green cheese" is empirically false, but is still a positive statement, as it is a statement about what is, not what should be.

<i>Essays in Positive Economics</i> 1953 book by Milton Friedman

Milton Friedman's book Essays in Positive Economics (1953) is a collection of earlier articles by the author with as its lead an original essay "The Methodology of Positive Economics." This essay posits Friedman's famous, but controversial, principle that assumptions need not be "realistic" to serve as scientific hypotheses; they merely need to make significant predictions.

In the most general terms, a reason is a consideration which justifies or explains an action, a belief, an attitude, or a fact.

Normative in academic disciplines means relating to an ideal standard or model, and in particular a normative statement is a statement that affirms how things should or ought to be, that is how to value them.

References

  1. "Normative Economics". Business Dictionary. Archived from the original on 23 December 2007. Retrieved 9 October 2014.
  2. 1 2 Lipsey, Richard G. (1975). An Introduction to Positive Economics (4th ed.). Weidenfeld & Nicolson. pp. 4–6. ISBN   978-0-297-76899-9.