For the Multidisciplinary Economics end-term it is important to know the articles of each week and to understand the material studied in each article. This document is an overview of the material you need to understand in order to be able to do well on the end-term.
Economics: Analyses the allocation of scarce resources.
Economics is a science. (Week 6)
Economics as a natural science:
Uses models and mathematics (Week 2)
Uses logical reasoning
Has empirical analysis (Based on experiments/data rather than theory)
Economics as a social science:
Complexity of human and social behaviour
Difficult to quantify
Economics is more about observation
It has been difficult to conduct experiments, but it is slowly becoming
more popular to conduct lab and field experiments (Week 7)
Multidisciplinary Economics: Drawing from multiple disciplines to redefine
problems outside of normal boundaries and reaching solutions based on a new
understanding of complex situations.
Multidisciplinarity: Draws on knowledge from different disciplines, but stays with
their boundaries. The objectives of multiple disciplinary approaches are to
provide different perspectives on problems.
Interdisciplinarity: Analyses, synthesises and harmonises links between
disciplines into a coordinated and coherent whole.It is about creating something
new by crossing boundaries, and thinking across them.
(Example: Organization Theory and Management Science)
Positive Vs. Normative Economics (Week 5)
Positive Economics Normative Economics
Objective and fact based Subjective and value based
Positive economic statements do not Normative economic statements are
have to be correct, but they must be opinion based, so they cannot be
able to be tested and proved or proven or disproved.
disproved.
What is? What ought to be?
, WEEK 2 Notes:
Drawbacks of mathematics:
Blackboard Economics (Week 5)
Mathematics abstracts from the real world
Strengths of mathematics:
Maths can be used to imagine several world, this makes it such a powerful
tool
Mathematics can be used in analysis or investigation in combination with
models
What are economic models?
Simplified descriptions (interpretations) of reality;
Models can be seen as both a question and an answer to particular
economic situations;
Models are made up of a story and a structure
Models are not the same thing as theories
Models cannot be true or false, their validity is tested by asking the
question: "Did they serve their purpose?"
A model can be 'true' or 'false' once it is applied to a particular situation
There is always a central tendency (there are deviations)
MODELS = STRUCTURE + STORY
Structure: Given by the logical and mathematical form of a set of postulates
Story: Interpretation of the structure and the conclusions that follow
Why is mathematics useful?
Models with unrealistic assumptions can be of use in understanding the world
due to:
Caricatures (Shed light on particular features of reality, distortion)
Approximations (As close to reality as possible, assumptions are
approximately true)
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