Economics based on value judgments stating what should be the case, e.g. ‘personal incomes should be equal’. The distinction between this type of economics and POSITIVE ECONOMICS includes in its ancestry HUME’S ‘is-ought’...

Normative economics is the branch of economics that incorporates value judgments about what the economy should be like or what particular policy actions should be recommended to achieve a desirable goal. Normative economics looks at the desirability of...