Daniel Hausman

Beware of economists bearing advice. Though some of it is valuable, the framework of theoretical welfare economics from which economic advice usually issues has serious normative limitations and distortions. When economists go beyond identifying consequences of policies to making recommendations, they typically rely on a theory whose only normative concern is welfare and its distribution and that mistakenly identifies welfare with the satisfaction of preferences. Their advice about how to increase welfare must accordingly be regarded with caution, and policy makers must not forget that increasing welfare should not be their only goal.

This essay argues that what is central to Christopher Boorse’s biostatistical theory of disease as statistically subnormal part function (BST) are comparisons of the “functional efficiency” of parts and processes and that statistical considerations serve only to pick out a healthy level of functional efficiency. On this interpretation, the distinction between health and pathology is less important than comparisons of functional efficiency, which are entirely independent of statistical considerations. The clarifications or revisions of the BST that this essay offers are friendly amendments that render moot some of the most prominent criticisms of Boorse’s account