This book shows through accessible argument and numerous examples how understanding moral philosophy can improve economic analysis, how moral philosophy can benefit from economists analytical tools, and how economic analysis and moral philosophy together can inform public policy. The book lays out the standard theory of rationality and connections to welfare economics, and it clarifies important moral notions omitted in standard welfare economics, including freedom, inequality, and justice. It also introduces technical work in social choice theory and game theory that is relevant to moral theorizing.

Daniel M. Hausman is Herbert A. Simon Professor of Philosophy at the University of Wisconsin, Madison. He is the author or editor of seven books, including Causal Asymmetries (1998), Essays on Philosophy and Economic Methodology (1992), The Separate and Inexact Science of Economics (1992), both editions of The Philosophy of Economics: An Anthology (1984, 1994), and the first edition of Economic Analysis and Moral Philosophy (Cambridge Surveys in Economic Literature, 1996, with Michael McPherson), all published by Cambridge University Press. Professor Hausman has worked on issues concerning ethics and economics, foundational questions concerning the nature of rationality, economic methodology, and causation. He is currently investigating questions concerning the relations between health, welfare, and preferences.

1. Ethics and economics?; 2. Normative economics: two examples; 3. How ethics matters to positive economics: two examples; Part I. Rationality and Morality: 4. Rationality; 5. Rationality in positive and normative economics; 6. Rationality, norms, and morality; Part II. Welfare and Consequences: 7. Utilitarianism and consequentialism; 8. Welfare; 9. Efficiency; Part III. Liberty, Rights, Equality, and Justice: 10. Liberty, rights and libertarianism; 11. Equality and egalitarianism; 12. Justice and contractualism; Part IV. Moral Mathematics: 13. Social choice and theory; 14. Game theory; 15. Pollution transfers and school vouchers - normative economics reconsidered; 16. Economics and ethics, hand in hand; Appendix; Glossary; References.