Methods of Economic Theory

The method is a set of specific methods, techniques and principles, which are determined by the way the task.

The system of methods used in economics, distinguished general (philosophical, ideological), the general scientific and private methods.

In economic theory, there are two opposing philosophical method - metaphysical (considering all the phenomena in isolation, in a state of immutability), and dialectical. The dialectical method allows more accurately reflect reality because:

it comes from the fact that in nature and society, all phenomena are in constant development, which is moving from simple to complex, from lower to higher forms;
it takes into account that the driving force of development is the unity and struggle of opposites, contradictions of certain events (for example, in the economy - the contradiction between production and consumption, conflicts of interest)
Scientific methods include a method of abstraction, analysis, and synthesis, induction and deduction, the unity of the historical and logical approaches, qualitative and quantitative analysis, systems approach.

(1) One of the most important in the economic analysis is the method of abstraction. Scientific abstraction is a mental distraction (abstraction) of the minor parties, properties, events (outside the visible form) and the determination of the main, the most significant in them. So captured the essence of the phenomenon. As a result of abstraction derived economic categories. They act as a theoretical expression of the real side of the economy (profit, price, product, money, salary). In aggregate economic categories form the conceptual apparatus. Further knowledge is aimed at studying the connection of economic phenomena.

(2) The significant in economic theory is the analysis and synthesis. Analysis - the dismemberment of the phenomenon into its constituent elements and a detailed study of each of them separately, finding its place and role within the whole. Synthesis - the method of inverse analysis, with the help of the connection is dissected and analyzed by the elements into a coherent whole, reveals the inner relationship between the elements, it turns out they interact, and the result is recreated a holistic view of a given phenomenon.

(3) The explanation of the essence of phenomena are induction and deduction. Induction - a movement from the particular to the general (accumulation, systematization and generalization of facts in order to formulate theories, principles). Deduction - moving from the general to the specific. Although induction and deduction are opposed ways the study of economic phenomena in the learning process difficult to separate them.

(4) A useful technique is the unity of the historical and logical approaches. Its significance lies in the fact that it allows you to not only find out the origin of the system and its components, but also to justify the trend of development, its stages. Economic theory should show the phenomenon in the development, movement, ie historically. At the same time, it considers the economic processes, independent of the vagaries of historical development, ie logically.

(5) Another method - the qualitative and quantitative analysis. Many economic processes and phenomena are developed on the basis of gradual quantitative changes. Such changes may be made to a certain level called quantitative measure of change. When further quantitative changes are not possible within the existing quality, they suggest a qualitative change.

(6) The economic effects are often studied in the framework of a system method. This involves consideration of the object being studied as a system as a set of elements interconnected. Furthermore, this system can be an element of a higher order (level). The systems approach assumes that economic phenomena studied composition and structure, to a certain chain of command, with the release of the cause-effect relationships.

In the group of private parties allocate graphics, statistics (eg, correlation analysis), mathematical methods (eg, linear and dynamic programming), modeling (including the use of computer technology), comparative analysis, a practical experiment, as well as methods

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