Download file to see previous pages...
At the core of the concern for methodology in economics is a concern on how economics acquire knowledge on the world and what methodologies economics use to expand the frontiers of that knowledge. Also closely related to the concern is the discipline’s notion of what constitutes science and what knowledge can be considered as scientific or what knowledge can be considered as lacking a scientific basis or foundation.
According to Hausman (1989, p. 115), the literature on economic methodology is mainly concerned with confirmation or disconfirmation of theory and has usually revolved on whether a particular economics is good science. Milton Friedman had viewed that good economic theories provide correct and useful predictions while Paul Samuelson had upheld that economic theories must involve operational concepts that are equivalent to their descriptions (Hausman, 1989, p.115). For Hausman, however, these views are mistaken because many of economic theorizing have been conceptual explorations and theories do not necessarily offer empirical hypotheses.
According to Hauman, the four approaches that have dominated the discussion on economic methodology are deductivism, positivism or Popperianism, predictionism, and eclecticism. Hausman (1989) associates deductivism with Johan Stuart Mill, the discussion on positivism or Popperianism with Mark Blaug, predictionism with Milton Friedman, and eclecticism with Donald McCloskey.
Deductivism asserts that because so many causal factors can influence economic phenomena, experimentation is generally not possible and induction cannot be directly employed (Hausman, 1989, p. 116, 3rd paragraph). The deductivist solution is to derive inductively the psychological or technical laws and then deduce the economic implications from the laws that were discovered inductively (Hausman, 1989, p. 116, 3rd paragraph). Empirical tests are needed to check whether the empirically derived conclusions are applicable, whether the
...Download file to see next pagesRead More
There is a reduction in growth rate as experienced in other developing countries for example 3.2%-2.6% rates in Kenya during the same period. Like other developing country, its population has doubled since 1990 due to the high population growth rate. However, its fertility rate is reducing just as the case in other developing countries for example from 7.0% between 1990-1995 and to a projected rate of 4.8% between 2010-2015.
The disappearing jobs and the devaluation in the home prices had compelled the consumers to cut down on their costs which adversely affected the labor market as the business laid off their workers to reduce costs, eventually making the country enter into a vicious downward cycle.
oyment is perilous for a country which is the reason why the governments of both developing and developed countries are taking steps to cope with this problem in a better way.
Actually, when employment starts to create problems, no one but government can handle it in the right
The market system is said to be a very just system where everyone gets what he or she deserves and there are no monopolies and government control on prices.
There are many reasons why market system is considered the best mechanism of allocating scare resources.
“The Hunt brothers believed that inflation would result in silver becoming a haven, just like its more expensive cousin, gold... Bunker foresaw at least a tenfold increase in the price of silver as a result of the plummeting
The overall structure of the industry suggest that there are two type of producers i.e. the one who produce and manufacture mobile phones and other ones who provide data services to communicate and perform other tasks
p1 by purchasing excess supply, there will be a problem in case there will be a rise in supply due to better than predictable yields of wheat at harvest time. This will cause the supply of wheat to shift out to Supply of wheat 2 as shown in graph putting down ward pressure on
While, the long run is the overall period till the period comes to termination. The long run has the disadvantage that the insurance policy might come to an end or the insured is compensated before the
According to studies, like Ferris (2013) the concern as to whether a market can be termed as efficient or not is purposeful only when considered in relation to the types of market information. Investors who own few securities expect to upsurge their
8 Pages(2000 words)Assignment
GOT A TRICKY QUESTION? RECEIVE AN ANSWER FROM STUDENTS LIKE YOU!
Let us find you another Assignment on topic Economics for FREE!