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17 sie 2020 · Inductive method is a process of arranging facts to draw universal laws. This method was used in economics by the German historical school that tried to develop economics from historical research. As per this method economist can collect material to draw generalizations and verifies the conclusions by applying them to subsequent events.
The Inductive Method: Induction “is the process of reasoning from a part to the whole, from particulars to generals or from the individual to the universal.” Bacon described it as “an ascending process” in which facts are collected, arranged and then general conclusions are drawn.
The methods used to construct economic theories have been derived in two: Deductive Method, and Inductive Method. 1. Deductive Method The deductive method is also called abstract, analytical and a priori method and represents an
18 kwi 2019 · The main difference between inductive and deductive reasoning is that inductive reasoning aims at developing a theory while deductive reasoning aims at testing an existing theory. In other words, inductive reasoning moves from specific observations to broad generalizations .
Inductive method which also called empirical method was adopted by the “Historical School of Economists". It involves the process of reasoning from particular facts to general principle. This method derives economic generalizations on the basis of (i) Experimentations (ii) Observations and (iii) Statistical methods.
We start by describing different ways to investigate economic phenomena. This is followed by an examination of two models that offer different approaches to defining and understanding the economy. The final section provides an introduction to the nature of markets.
Inductivism and Deductivism in Economics. Chapter. pp 1–21. Cite this chapter. Download book PDF. John Pheby. 33 Accesses. Abstract. This chapter is concerned with two methodological positions, inductivism and deductivism, that have exerted some influence upon the methodology of economists.
