4. CV‐Working‐Papers

Working Papers.

Computational Business Microeconomics Micro1.pdf Micro2.pdf Micro3.pdf Micro4.pdf micro5.pdf

Introduction to Computational Normative Economic Analysis by Muhammad Mustafa Rashid

Normative Economics Analysis addresses questions that involve value judgements, also known as normative questions, concerning the allocation of resources. What ought to happen (Normative Ethics). Is Society better off with free trade between countries or with trade barriers? What is the best way to control carbon emissions? Are there ways to reduce carbon emissions? Subjective value judgements are neither right nor wrong. How do economists conduct normative analysis? The Principle of Individual Sovereignty Each person knows what is best for him. The individual principle helps in avoiding paternalistic judgements. Economists apply the same principle to policy questions. If, with full knowledge of all consequences, someone would choose trade barriers over free trade, then we conclude he is better off this way. In this way, economists predict what the consumer will choose. In this way, economists turn normative questions into positive questions and predict what the consumer will choose. Interests of people often conflict. A policy that benefits one person may not benefit the other. If someone supplies a subjective criterion, then normative analysis can be used. Social perspective: more dollars in someone's hands. More money in the hands of A is worth more than in the hands of B because A is poor. If positive economic analysis shows that policy is likely to raise A's income by $80 and B's income by $100, because A has more money than B, then, according to the 'criterion set'( which in this case is to reduce inequality or provide help to the poor or unemployed ), this policy will be beneficial. Furthermore, this underscores the importance of criteria in normative analysis.