A Kantian perspective on teaching ethics to economists

When economists learn how to model decision-making, whether on the part of individuals or governments, it almost always takes the form of maximization of utility or welfare, based on individual or social preferences, within given resource constraints. Although these are the standard models and techniques of neoclassical economics, and the core of mainstream economics practice and education, the focus on maximization reflects a morally narrow viewpoint that limits the explanatory and predictive power of economics. In this chapter, I will explain that the foundation of these models lies in utilitarian ethics, which suffers from criticisms that are routinely discussed in moral philosophy but are rarely mentioned by economists, either in practice or education. Then I will suggest an alternative approach, the deontological ethics of Immanuel Kant, which can supplement the traditional models of choice and broaden the range of ethical motivations, decision-making, and behavior of individuals, firms, and governments. Kantian ethics, grounded in human dignity and autonomy and expressed in the qualitative language of duties, rights, and justice, challenge the dominant quantitative orientation of mainstream economics based on utilitarian optimization. Given the way that Kantian ethics can contribute to economic modeling, however, mathematical techniques remain available, while ensuring that crucial humanistic guidelines are followed.