1.3: The Normative Science of Evaluation and Policy

positive analysis

• what we observe

• not based on judgement

• factual

• modelling, explaining and describing what is observed

• objective

• describes the situation as is, in a neutral manner

• e.g. producer behaviour, consumer behaviour, government behaviour

normative analysis

• evaluate how society is doing in terms of achieving a certain goal

• evaluates whether a situation is desirable or not

• prescribing what should happen, based on certain value judgements

• requires evaluation (based on principles)

  • pareto principle: if we can make at least one person better off without making anyone else worse off, then it's an improvement

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