Summary
Economic Methodology Summary. All lectures and Tutorials.
- Course
- Institution
Economic methodology summary. Contains all lectures and tutorials. Grade: 7.5. All relevant information included.
[Show more]
1 review
By: lucasgoossens1 • 1 year ago
Seller
Follow
yoel0507
Reviews received
Content preview
Economic MethodologySummary of all Lectures & Tutorials
Radboud University Nijmegen
Yoël Guijt
, Lecture 1
Introduction
* Economic methodology = Set of methods in economics
* Focus is on the framework of their application, not on the methods themselves
* Critical re ection is important for example
* Method = how economists do things
* About the philosophy of social sciences applied to economics
* Should see the economy as a whole
Positive economics:
* What do economists really do?
* How is it really organized, what criteria are really applied, etc.
Normative economics:
* What should economists really do?
* Criteria of good science; what is good, what should we do, etc.
* We need economic methodology to understand what happens economic and how in real world
Lecture 2
Some Case Studies
* How to do research in economic methodology?
* Start complaining (surely, economics is no science? — people aren’t rational? etc.)
* Through Case Studies (From easy de nitions to how crisis changed economics, etc.)
De nition of economics
* Viners: Economics is what economists do!
* Smith: Science of wealth…
* Marshall: Economics is a study of mankind in the ordinary business of life… Wealth + behavior
* Robbins: Science which studies human behavior as relation between ends and scarce means
* De nition de nes the boundaries of the science!
Crisis 2008, for example:
* Economists didn’t see it coming, couldn’t be predicted by the economic science!
* Too simplistic equilibrium models, lack of knowledge on institutions, asymmetric info, etc.
Nobel Prize:
* Most important price for contribution of the science
* Lately, mostly climate and innovation etc. Economics is changing all the time!
* Formalizing is important ==> restating in term of maximization and equilibrium
* Is needed for better grasp of ideas; easier to understand
fi fl fi fi
, Lecture 3
Theories — Deduction and Induction
Logical Positivism
* Logic = Formal framework in which scienti c terms are best to be put (stating in logic form)
* Positivism/Empiricism = All evidence is directly or indirectly derived form ‘sensual
data’ (observe reality)
* Science is characterized by the ability to formulate theories
* Context of discovery = process that leads to the theories (thinking process)
* Context of justi cation = process of veri cation, given a theory and hypothesis
Logical positivist philosophy of science:
* Demarcation problem: To separate science from non-science (metaphysics)
* Which propositions are scienti c?
* Analytic = Truth is already in the premises (1+1=2; according to this model, this is bene cial)
* Synthetic = If they are con rmed by empirical research (as the empirical demonstrates …)
* All OTHER propositions are metaphysical, no meaning to science
* Synthetic proposition is only meaningful if it empirically veri able (or we can’t observe…)
Theories should be formulated in a way that it is possible to observe
* Best in sentences and described in formal language and rely on axioms (assumption)
* Then you could operationalize to make things observable !
Induction: From concrete to abstract = from observation to theory
* = easiest way to draw on observations (white, white, white … so every swan is white)
* Problem of induction: not all swans are observable
* AND future events are not easily formulated (Will it rain? Via induction, you cannot know)
John Stuart Mill:
* Compare two situation; in one, there is the phenomenon, in the other not… Is it di erent? The
phenomenon is the cause
How do theories generally explain? Logical positivism = deductive-nomological model
* Deductive = process of deriving (deducing) the thing to explain (explanandum) from the
statements (explanans)
* Nomological = these statements should include a law
* Deduction = from the abstract to the concrete; from general to speci c; from theory to observe
* BUT… Only use causally relevant factors for this model (about pregnancy, don’t use men…)
* Symmetry thesis ===> Explanation and prediction
Problem: How do we know that the statements in explanans are laws???
* They should be universally, but… there might not be according to empirical data… and then?
* Instrumentalism = Laws are just useful generalizations for predictions
* Con rmationism = Laws express most probable outcomes
John Stuart Mill: Economics…
* Borrow proven laws >> Derive predictions from these laws >> Test the predictions >> Correct?
Then the explanation is useful. Incorrect? Mistakes in deduction//interference//laws central?
Logical Positivists:
* Scienti c theories should be based on Empirical Data + Analytical or Synthetic + Operationalize
fi fi fi fi fi fi fi fi fi ff fi
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller yoel0507. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $6.32. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
76462 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now
Recently viewed by you
Exam (elaborations) ·
Casualty Producer NJ Exam With Verified Answers (100% Correct)
