Is Welfare Economics Positive Or Normative: Exploring Economic Perspectives

Is welfare economics a branch of positive economics? Economics can be categorized into two main branches: positive economics and welfare economics. Positive economics primarily focuses on the analysis of economic theories and principles. In contrast, welfare economics is specifically concerned with evaluating and scrutinizing economic policies and their impact on societal welfare. In essence, while positive economics delves into the theoretical aspects of economics, welfare economics zooms in on the practical application and consequences of economic policies for the well-being of a society.

Welfare economics is a branch of economics focused on providing policy recommendations to address market failures and promote societal well-being. It falls under the umbrella of normative economics, which delves into how policies should ideally be formulated. This inherently entails making subjective value judgments, which can be a matter of debate among economists and policymakers. In essence, welfare economics aims to guide the design of policies that enhance overall welfare and societal outcomes by addressing inefficiencies in markets.