AbstractPeople seem to be motivated by moral ideas and in this paper I
discuss how we should take this into account in positive and normative
economics. I review alternative ways of modelling moral motivation
and reasoning in positive economics and discuss how the presence of
moral motivation may challenge the standard framework of welfare
economics. I also discuss the need for invoking non-welfaristic principles
in normative economics and whether these principles can be reconciled with the Pareto principle.