Economic methodology is the study of methods, especially the scientific method

Scientific method

Scientific method refers to a body of techniques for investigating phenomena, acquiring new knowledge, or correcting and integrating previous knowledge. To be termed scientific, a method of inquiry must be based on gathering empirical and measurable evidence subject to specific principles of...

, in relation to economics

Economics

Economics is the social science that analyzes the production, distribution, and consumption of goods and services. The term economics comes from the Ancient Greek from + , hence "rules of the house"...

, including principles underlying economic reasoning. In contemporary English, the term 'methodology' is used also to emphasize theoretical or systematic aspects of discussions of a method (or several methods).

Scope

General methodological

Methodology

Methodology is generally a guideline for solving a problem, with specificcomponents such as phases, tasks, methods, techniques and tools . It can be defined also as follows:...

 issues include similarities and contrasts to the natural science

Natural science

The natural sciences are branches of science that seek to elucidate the rules that govern the natural world by using empirical and scientific methods...

s and to other social sciences

Social sciences

Social science is the field of study concerned with society. "Social science" is commonly used as an umbrella term to refer to a plurality of fields outside of the natural sciences usually exclusive of the administrative or managerial sciences...

 and, in particular, to:

• the definition of economics
  Definitions of economics
  There are a wide variety of definitions of economics with no univerally accepted definition. Adam Smith wrote of economics as being concenred with inquiring into the nature and causes of the wealth of nations. The pessimistic outlook of some of the classical economists following Smith, Malthus...
  
  
• the scope of economics as defined by its methods
• fundamental principles and operational significance of economic theory
• methodological individualism
  Methodological individualism
  Methodological individualism is the theory that social phenomena can only be accurately explained by showing how they result from the intentional states that motivate the individual actors. The idea has been used to criticize historicism, structural functionalism, and the roles of social class,...
  
   versus holism in economics
• the role of simplifying assumptions such as rational choice and profit maximizing
  Profit maximization
  In economics, profit maximization is the process by which a firm determines the price and output level that returns the greatest profit. There are several approaches to this problem...
  
   in explaining or predicting phenomena
• the relation of descriptive and prescriptive uses of theory
• the scientific status of economics
• issues critical to the practice and progress of econometrics
  Econometrics
  Econometrics has been defined as "the application of mathematics and statistical methods to economic data" and described as the branch of economics "that aims to give empirical content to economic relations." More precisely, it is "the quantitative analysis of actual economic phenomena based on...
  
  
• the balance of empirical
  Empirical
  The word empirical denotes information gained by means of observation or experimentation. Empirical data are data produced by an experiment or observation....
  
   and philosophical approaches
• the role of experiments
  Experimental economics
  Experimental economics is the application of experimental methods to study economic questions. Data collected in experiments are used to estimate effect size, test the validity of economic theories, and illuminate market mechanisms. Economic experiments usually use cash to motivate subjects, in...
  
   in economics
• the role of mathematics
  Mathematics
  Mathematics is the study of quantity, space, structure, and change. Mathematicians seek out patterns and formulate new conjectures. Mathematicians resolve the truth or falsity of conjectures by mathematical proofs, which are arguments sufficient to convince other mathematicians of their validity...
  
   and mathematical economics
  Mathematical economics
  Mathematical economics is the application of mathematical methods to represent economic theories and analyze problems posed in economics. It allows formulation and derivation of key relationships in a theory with clarity, generality, rigor, and simplicity...
  
   in economics
• the writing and rhetoric of economics
• the relation between theory, observation, application, and methodology in contemporary economics.

History

Economic methodology has gone from periodic reflections of economists on method to a distinct research field in economics since the 1970s. In one direction, it has expanded to the boundaries of philosophy, including the relation of economics to the philosophy of science

Philosophy of science

The philosophy of science is concerned with the assumptions, foundations, methods and implications of science. It is also concerned with the use and merit of science and sometimes overlaps metaphysics and epistemology by exploring whether scientific results are actually a study of truth...

 and to the theory of knowledge. In the context of philosophy and economics

Philosophy of economics

Philosophy and economics may refer to the branch of philosophy that studies issues relating to economics or, alternatively, to the branch of economics that studies its own foundations and status as a moral science....

, additional subjects are treated as well, including decision theory

Decision theory

Decision theory in economics, psychology, philosophy, mathematics, and statistics is concerned with identifying the values, uncertainties and other issues relevant in a given decision, its rationality, and the resulting optimal decision...

 and moral philosophy/ethics.

See also

• Philosophy and economics
• Normative economics
  Normative economics
  Normative economics is that part of economics that expresses value judgments about economic fairness or what the economy ought to be like or what goals of public policy ought to be....
  
  

• Positive economics
  Positive economics
  Positive economics is the branch of economics that concerns the description and explanation of economic phenomena. It focuses on facts and cause-and-effect behavioral relationships and includes the development and testing of economics theories...
  
  
• Methodology of econometrics
  Methodology of econometrics
  The methodology of econometrics is the study of the range of differing approaches to undertaking econometric analysis.Commonly distinguished differing approaches that have been identified and studied include:* the Cowles Commission approach...
  
  

• Model (economics)
  Model (economics)
  In economics, a model is a theoretical construct that represents economic processes by a set of variables and a set of logical and/or quantitative relationships between them. The economic model is a simplified framework designed to illustrate complex processes, often but not always using...
  
  
• Economic imperialism (economics)

External links

• Journal of Economic Methodology — Aims & Scope & links to issues and abstracts.
• On the Methodology and History of Economics — sources & links from the New School
• Daniel M. Hausman, 2003. "Philosophy of Economics", Stanford Encyclopedia of Philosophy
• Milton Friedman, 1953. "The Methodology of Positive Economics," (in 3 links)
• Lionel Robbins, 1935, 2nd ed. An Essay on the Nature and Significance of Economic Science
• Waleed Addas, 2008. Methodology of Economics: Secular versus Islamic
• Homophileconomicus (Philosophy and Economics Blog, with useful links, conference announcements, course syllabi, news concerning recent research, etc.)