what is normative economic analysis?

Question

what is normative economic analysis

Answer 1

normative analysis refers to how things ought to be

positive analysis refers to how things actually are

normative economic analysis normally focuses on the identification of institutions that result in pareto optimal outcomes, by which i mean outcomes where noone can be made better-off without making someone else worse-off

Answer 2

Oh' just as a layman, and not the guy who's gonna' answer this for your paper that's due tomorrow , you'd probably fail, the bozo's in congress have to use normative economics to make it look good. Using positive analysis would uncover too many lies! From this "normative analysis" they can then decide where they will justify the next spending trend. Then /that/ will become the normative economy and so on and so forth... Grade? F++

Answer 3

Normative law and economics goes one step further and makes policy recommendations based on the economic consequences of various policies. The key concept for normative economic analysis is efficiency. The weakest concept of efficiency used by law and economics scholars is Pareto efficiency. A legal rule is Pareto efficient if it could not be changed so as to make one person better off without making another person worse off. (By weak, economists mean that Pareto efficiency makes very few normative assumptions, not that it is supported by weak arguments.) A stronger conception of efficiency is Kaldor-Hicks efficiency. A legal rule is Kaldor-Hicks efficient if it could be made Pareto efficient by a side payment.