Fact-value distinction in the context of Descriptive economics

⭐ Core Definition: Fact-value distinction

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

Statements of fact (positive or descriptive statements), which are based upon reason and observation, and examined via the empirical method.
Statements of value (normative or prescriptive statements), such as good and bad, beauty and ugliness, encompass ethics and aesthetics, and are studied via axiology.

This barrier between fact and value, as construed in epistemology, implies it is impossible to derive ethical claims from factual arguments, or to defend the former using the latter.

↓ Menu

Fact-value distinction in the context of Normative economics

In the philosophy of economics, economics is often divided into positive (or descriptive) and normative (or prescriptive) economics. Positive economics focuses on the description, quantification and explanation of economic phenomena, while normative economics discusses prescriptions for what actions individuals or societies should or should not take.

The positive-normative distinction is related to the subjective-objective and fact-value distinctions in philosophy. However, the two are not the same. Branches of normative economics such as social choice, game theory, and decision theory typically emphasize the study of prescriptive facts, such as mathematical prescriptions for what constitutes rational or irrational behavior (with irrationality identified by testing beliefs for self-contradiction). Economics also often involves the use of objective normative analyses (such as cost–benefit analyses) that try to identify the best decision to take, given a set of assumptions about value (which may be taken from policymakers or the public).

View the full Wikipedia page for Normative economics

↑ Return to Menu

Fact-value distinction in the context of Descriptive economics

Fact-value distinction Study page number 1 of 1

Play TriviaQuestions Online!

Skip to study material about Fact-value distinction in the context of "Descriptive economics"

⭐ Core Definition: Fact-value distinction

Fact-value distinction in the context of Normative economics