Home business economics what is deductive methodology of economics Save Topic

What is Deductive Methodology of Economics

It is also known as abstract, axiomatic, a priori analytical.  The economist begins from the principle which are accepted as self-evident or proved proposition and then draws conclusion as consequences of these principles through the process of valid resourcing moves from “General to Particular”.

Deductive logic passes through following stages.

  1. Perception and selection of premises from which the conclusions are to be derived.  Assumptions are made.
  2. Inferences are drawn from the premises originally selected.
  3. It consists of a return to the real world by means of an interpretation that yields conclusion in term of concrete sensible world of physical reality.

Merits

Demerits

Simple

Economical

Accurate & reliable

Unrealistic assumption

Require more competence

It is based on false premises, then false conclusion.

Static analysis

Not applicable uniformly


 


`

Topic reviews Post Review

Average topic rating

0 / 5

Review this topic