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Methodological Economics

Overview Of Methodological Economics

Methodology in economics refers to techniques applied by economists for the analysis of economic phenomena. Economics is a branch of science which is well structured in terms of theories and facts. It encompasses identifying a problem area, collecting the relevant data to be analysed. Economists then study the data and decide on the relevant analytical tools to be applied. This is use to formulate a postulation and is used to solve the problem. It is a cause and effect explanation verified by application of statistical tools. Economic Methodology questions theclassification of economics as a social science and introduces students to philosophical issues applicable to modern sciences. It is done to enhance analytical skills amongst students of economics.

Methodological economics refers to the body of knowledge in studying economics. It answers certain questions such as:

Can generic rules be applied in conducting economic analysis?

Is yes then what are the key components of undertaking economic analysis in the best possible manner?

If generic rules cannot be applied can there be guidelines which can be followed.

What are the general principles applied by economists?

What is the difference between understanding economics and other social sciences? How different is the approach?

Methodology is different from methods. Methodology entails adopting a certain line of thought or a specific approach to problem solving. It has to provide option for choosing the right method. Method is usually prescriptive in nature while methodologies are descriptive in nature.

Methodological issues have been raised by many schools of thoughts but broadly six issues which have been identified as regarding the methodologies to be applied while undertaking economic research.

Positive and Normative Economics

Reasons and Causes

Social Science Vs Natural Science

Ceteris Paribus clause

Causation

Structure and Strategy in economics

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